FX.co ★ EUR/USD candlestick analysis for May 21

As it was stated yesterday, if the EUR/USD pair breaks the resistance level of 1.2445, the combination of the candlesticks “Bullish Engulfing with Hammer” would set. It happened so. This candlesticks combination shows that the currency pair has made a plunge from 1.3105 to 1.2142, where the bears were not able to fixate and the trading was lead by the bulls.
Now it is expected that the currency pair has targeted to 1.3105, where a strong resistance level is positioned as well as the level of Fibonacci correction - 61.8.
it should be mentioned that in the situation of extreme nervous pressure on the market the sovereign debt problems in the euro area made the investors accept a waiting attitude. Thus, the volumes of the trading have probably been twice as less as normal. Consequently, high currency fluctuations should be expected in the conditions of low trading volumes and minor deals amid the low liquidity level.