FX.co ★ EUR/USD candlestick analysis for May 24, 2010

As it was stated before, on a day-chart of EUR/USD a combination of candlesticks “Bullish Engulfing with Hammer” is formed. This combination shows that the currency pair made a plunge from 1.3105 to 1.2142, where the Bears could not fixate and the bulls took the leading part during the trading session.
Not the currency pair is expected to have targeted to 1.3105, where a strong resistance level is located as well as Fibo correctional level of 61.8.

On the other hand, on a 4-hour chart a combination “Bearish Engulfing” has been formed signaling the falling. This combination has developed after the currency pair has recoiled from 1.2141. If the support level of 1.2442 is broken, this will confirm that our viewpoint is correct and a decline to 1.2295 should be expected with the following target of 1.2141.