The EUR/USD pair tried to rally during the session on Wednesday, but as you can see the 1.31 level offered enough resistance to make a shooting star appear. This failure to break above the 1.31 level is significant, as it is the same level is the top of the candle that started the gap a couple of weeks ago. With that being the case, it does look like the Euro may start to selloff again. If we get below the 1.3050 level, we will more than likely see this market pullback. We aren’t calling for any type of meltdown, but do recognize the fact that we are in an overall downtrend. Alternately, a break above the top of the shooting star would be an extraordinarily bullish sign, in this market should continue higher.
Written by FX Empire