Weekly
   •   Last Candlesticks pattern: Shooting starÂ
   •   Time of formation: 03 May 2016
   •   Trend bias: Down
Daily
   •   Last Candlesticks pattern: Shooting star
   •   Time of formation: 3 May 2016
   •   Trend bias: Sideways
EUR/USD – 1.0946
The single currency retreated after rising to 1.1025 and consolidation below this level would be seen, however, reckon downside would be limited and the Kijun-Sen (now at 1.0798) and should attract renewed buying interest and bring another rise later, above said resistance at 1.1025 would add credence to our bullish view that the erratic rise from 1.0340 low is still in progress and upside bias remains for this move to extend further gain to 1.1050-60 and possibly towards 1.1100, however, reckon upside would be limited to 1.1125-30 (61.8% Fibonacci retracement of 1.1616-1.0340) and price should falter well below previous chart resistance at 1.1300, bring strong retreat later.
On the downside, whilst initial pullback to 1.0870-75 cannot be ruled out, reckon downside would be limited to the Kijun-Sen (now at 1.0798) and bring another rise later to aforesaid upside targets. Below said support at 1.0778 would defer and risk weakness to the lower Kumo (now at 1.0700) but only break there would signal a temporary top is formed, bring further fall to 1.0675 but a daily close below 1.0609 would signal recent rise from 1.0340 has ended, risk test of key support at 1.0570 first.Â
Recommendation: Buy at 1.0800 for 1.1000 with stop below 1.0700.
On the weekly chart, as the single currency has retreated after rising to 1.1025 last week and consolidation below this level would be seen and pullback to support at 1.0835-40 cannot be ruled out, however, reckon the Tenkan-Sen (now at 1.0798) would limit downside and bring another rise later, above said resistance at 1.1025 would extend recent rise from 1.0340 low for retracement of recent downtrend, hence further gain to the upper Kumo (now at 1.1070) but reckon upside would be limited to 1.1125-30 (61.8% Fibonacci retracement of 1.1616-1.0340) and 1.1200-10 would hold, price should falter well below strong resistance at 1.1366.
On the downside, expect pullback to be limited to support at 1.0839 and the Tenkan-Sen (now at 1.0798) should hold, bring another rise later. Only a drop below previous resistance at 1.0778 would abort and suggest top is formed instead, bring weakness to 1.0682-83 (current level of the Kijun-Sen and previous support). Below there would shift risk to the downside for further gall to 1.0570 support but only a weekly close below there would provide confirmation the aforesaid corrective rise from 1.0340 low has ended, then further decline towards key level at 1.0493 would follow.
