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 – 1.1272
The single currency has resumed recent upmove after finding renewed buying interest at 1.1109, retaining our bullishness for recent upmove from 1.0340 low to extend further gain to previous resistance at 1.1300, then 1.1327, however, near term overbought condition should limit upside to previous chart resistance at 1.1366 and reckon 1.1440-50 would hold from here, risk from there is seen for a retreat later.
On the downside, whilst initial pullback towards Friday’s low at 1.1205 cannot be ruled out, reckon the Tenkan-Sen (now at 1.1197) would limit downside and bring another rise later to aforesaid upside targets. Only a drop below said support at 1.1109 would defer and risk test of the Kijun-Sen (now at 1.1062) but a daily close below there is needed to suggest a temporary top is possibly formed instead, risk correction to 1.1025 (previous resistance now support), break there would add credence to this view, then correction to 1.0950-60 would follow, having said that, support at 1.0839 should remain intact.
Recommendation: Hold long entered at 1.1120 for 1.1320 with stop below 1.1105.
On the weekly chart, last week’s rally from 1.1109 together with the breach of previous resistance at 1.1268 add credence to our view that the rise from 1.0340 low is still in progress and bullishness remains for this erratic upmove to bring a test of previous resistance at 1.1300, however, a break of another previous resistance at 1.1366 is needed to signal early downtrend has ended at 1.0340, bring further subsequent rise to 1.1428 but reckon 1.1500 would hold and price should falter well below another previous chart resistance at 1.1616.
On the downside, expect pullback to be limited to 1.1202-05 support and bring another rise later to aforesaid upside targets. Below said support at 1.1109 would defer and risk weakness to the upper Kumo (now at 1.1061), then test of 1.1025 (previous resistance now support) but break there is needed to signal top is formed instead, bring further fall to 1.0965-70 but 1.0922-28 (previous support and current level of the Tenkan-Sen) should remain intact, price should stay well above another previous support at 1.0839, bring another rise later.
