FxWirePro: EUR/CAD uptrend reversal signal on gravestone doji and shooting star formation; sell rallies for target at 1.3758

The formation of Gravestone doji and shooting star candlestick patterns at 1.4010 and 1.4109 levels on EOD charts confirms reversal of existing rallies.

The long upper shadow of the Shooting Star implies that the market tested to find where resistance couldn't hold on at 1.4254 levels and supply was located and accumulated.

This was highs of the day on that candle, when the market found the area of resistance at the above levels. This was the time when bulls started losing buying interest and bears began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears.

In addition to that above pattern, gravestone doji pattern popped up to indicate that the course of the trend maybe be nearing a major turning point. Currently, a strong support at 1.4005 is traced on this pair. Any breach below this support would drag until 1.3881 or even upto 1.3758 levels.

While leading oscillator signifies the overbought heaviness as the %D line on stochastic curve crossover is seen above 80 levels and this has now been getting confirmed on weekly charts of this pair. RSI also signaled divergence of previous price rallies which is deemed as previous uptrend is does not sustain.