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Euro Currency Forms a Bearish Candlestick

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Looking at the euro currency (EUR) in the world’s most liquid currency exchange rate, the EUR/USD Forex market, this key Forex market seems to have had a bearish trend change.

On the above daily MT 4 chart, the euro currency is looking to form a bearish inverted hammer candlestick hammer formation against the U.S. dollar (USD).

Today, Forex traders will be monitoring key economic data out of the United States. This data includes the monthly Institute for Supply Management (ISM) non-manufacturing purchasing managers’ index (PMI).

The world’s largest economy will also release weekly first time unemployment claims data as well as continuing claims. The United States also has final services purchasing managers’ index (PMI) on the schedule.

The European Union is releasing monthly retail sales data. The Eurozone will also publish final services purchasing managers’ index (PMI). Italy is publishing monthly services purchasing managers’ index (PMI) data, as well. The United Kingdom will also release their final services purchasing managers’ index (PMI).

Daily Euro Currency Technical Analysis (EUR/USD)

Looking at the above MT price chart, the euro currency, during the Asian trade session has fallen towards 1.1855. The emergence of this possible bearish inverted hammer candlestick hammer formation still needs confirmation with a negative close later today.

The relative strength index (RSI) has also started to trend lower, which is a negative signal. The first layer of technical support lines up at 1.1808. However, a daily close below the 21 August price point at 1.1754 will open the door to challenge the 21 day moving average in play at 1.1630.

On the upside, a daily close above 1.1915 will open the door to challenge the next layer of technical resistance in play at 1.1930. The next upside barrier lines up at 1.1975. A sustained close above this last level opens the door to challenge the upside barrier in play at 1.2020.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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