EURUSD 7 March 2011

by earnforex on March 6, 2011

in Forex

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Pergh… I am sure not only me got trapped with EURUSD. I expected that the price will start to reverse at 1.3950 which is at 23% fibonacci retracement of 1.4281 to 1.2869, but EURUSD went up to the major psychological area at 1.4000, and daily upper trendline.

Psychological area is Psychological Numbers which are based on the last two digits of the price, such as 50 and 00.

Below is daily chart for EURUSD.

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Friday’s candle is very similar to evening star. If valid, the reversal for EURUSD should start from here. For those who don’t know what is shooting star candle, below is the criteria of evening star candle (credited from Investopedia):

A bearish candlestick pattern consisting of three candles that have demonstrated the following characteristics:
1. The first bar is a large white candlestick located within an uptrend.
2. The middle bar is a small-bodied candle (red or white) that closes above the first white bar.
3. The last bar is a large red candle that opens below the middle candle and closes near the center of the first bar’s body.

Hmm.. hope this evening star is valid :-)

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