FX.co ★ The EUR/USD candlestick analysis for 26/10/2010

The EUR/USD moves down from the mark of 1.4078. If the falling continues then when the support level of 1.3696 is breached the downside movement with the target at 1.3382 is expected, where Fibonacci correctional level is placed.
Earlier on a 4-hour graph, the EUR/USD has formed Shooting Star candlestick, which is a bearish signal.
This candlestick formed on the uptrend. However, the bears started to increase their influence and a rollback took place near January 2010 high.
The breakout of Fibonacci correctional level 23.6 and support level of 1.3777 means that the uprising trend is broken through.
The upward tendency is confirmed by the fact that the EUR/USD formed the combination of candlesticks Dark Cloud Cover on a daily chart.
On the other hand, in case the resistance level of 1.4078 is breached the short positions should be cut, as it will lead to advance to 1.4157.