EUR/USD Potentially Charting Bearish Reference Candle
The below is the daily chart of the EURUSD. Further to our previous article, we are assessing if a bearish 1-2-3 pattern is forming, with the 1-2 being the impulse move down and the 2-3 being the correction up. Yesterday’s candle may be a bearish reference candle i.e. a candle with a lower high on either side of it (blue arrow). If today’s candle closes below the reference candle's low (black horizontal line) it will give weight to the bearish 1-2-3 scenario. We note that the RSI(9) is below 50 and indicative of an underlying bearish momentum (blue rectangle).
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