FX.co ★ EUR/USD Forecast, 25 November

Euro buyers are now trying to hold a break above the 9 November high of 1.1920.

However on the 4 hourly chart, we can see that a shooting star occurs after an advance and indicates the price could start falling. The long upper shadow represents the buyers who bought during the day but are now in a losing position because the price dropped back.

Traders typically may wait to see what the next candle does following a shooting star. If the price declines during the next period they may short. On the downside, there are many important supports, starting with 1.1830. There is also a key bullish trend line forming with support on the same chart. If there is a downside break below the ascending trend line support and forming a new low, the pair could test 1.1800. Any further losses may perhaps lead EUR/USD towards the 1.1750 support zone.

On the flip side, if the price rises after a shooting star, the price range of the shooting star may still act as resistance. The price may consolidate in the area of the shooting star. If the price ultimately continues to rise, the uptrend is still intact and traders should favor long position. A firm push above that to see little in the way of the pair heading towards some daily resistance around 1.1966 and then the 1.2000 level.

Back to EUR/USD, this could be buyers starting to test the waters a little so just be mindful that there could be more follow through momentum in US trading later.