The EUR/USD currency pair moves upward again. Nonetheless, the viewpoint on the currency pair remains bearish. As it was mentioned before, if the support level of 1.3696 is broken through the downside movement with the target at 1.3382 is expectable.
Earlier on a 4-hour graph the EUR/USD has formed Shooting Star candlestick, which indicates the bearish sentiment.
This candlestick emerged on the uptrend. However, near January 2010 high the bears started to increase their influence and a rollback took place.
The breakout of Fibonacci correction level 23.6 and support level of 1.3777 denotes the breakthrough of the uptrend and confirms this point of view.
The combination of candlesticks Dark Cloud Cover, formed on the daily chart of the EUR/USD, comes in favor of downwards motion.
Moreover, a pattern “Head-And-Shoulders” is, probably, forming on 4-hour graph. The breakthrough of the “neckline” will confirm this fact.
In case the resistance level of 1.4079 is breached, the short positions should be cut, since it will lead to increase to 1.4157.