EUR/USD Potentially Charting Bearish Reference Candle

Russell Shor, CFTe, MFTA FXCM

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).

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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