FX.co ★ The EUR/USD candlestick analysis for 20/10/2010

The EUR/USD pair continues to move downwards.
Earlier on a 4-hour chart, the EUR/USD had formed Shooting Star candlestick that is a bearish signal.
This candlestick emerged on the uptrend. However, near January 2010 high, the bears started to increase their influence and a rollback happened.
The breakthrough of Fibonacci correctional level 23.6 and support level of 1.3777 indicates that the uptrend is breached and that this viewpoint is correct.
Now, the downside movement to 1.3382, where Fibonacci correctional level 50.0 is placed, should be expected.
The downside tendency is confirmed by the fact that on a daily chart the EUR/USD had formed the combination of candlesticks Dark Cloud Cover.
On the other hand, if the resistance level of 1.4157 is broken through, then short positions should be closed, as it will lead to new annual highs.