FX.co ★ EUR/USD Candlestick Analysis for August 27, 2010

EUR/USD is consolidating after it has not managed to break through Fibonacci correctional level of 50.0. As it was stated before, on a daily chart of EUR/USD a combination of candlesticks “Dark Cloud Cover” was formed, signaling a decrease, which was confirmed thereafter.
This combination was developed after the currency pair had reversed from 1.3333. “Dark Cloud Cover” provided a good opportunity to open short.
Passing Fibonacci correctional level of 23.6 proves the viewpoint to be right. Moreover, a successful puncture of 38.2 Fibonacci correctional level and of the support level 1.2737 has targeted the EUR/USD pair to 1.2476, where there is a Fibonacci correctional level of 61.8.
On the other hand, as soon as the resistance level of 1.2924 is broken, it is recommended to close short positions as breaking through this level will open the way to 1.3333.