FxWirePro: EUR/USD shooting stars hamper previous bullish momentum but consolidation phase remain intact – Bid one touch binary put on bearish DMA crossover

The shooting star pattern candles have occurred quite often to disrupt uptrend, as and when this bearish pattern occurred at 1.1972, 1.2034, and 1.1947 levels on daily terms, 1.3768 and 1.1811 levels on monthly terms, you could make out their subsequent bearish effects.

We had explicitly stated that the shooting star may hamper short-term uptrend sentiment, the rest is history if you look at the prevailing price slumps.

While both leading as well as lagging indicators have been converging southwards along with the price dips that seems to be in bears’ favor in the short run (refer daily chart).

Most importantly, 7DMA has crossed below 21DMA which is the bearish crossover (daily chart). MACD, on this timeframe, has evidenced bearish crossover that indicates downswings most likely to prolong further.

On a broader perspective, we trace out the same pattern (shooting star) on the last month’s candle, but not coupled with trend indicator, hence, it is not to be deemed as a reversal signal in an isolation.

Instead, the consolidation phase that has begun since February 2015 is conformity to the massive volumes in the uptrend.

Bulls have managed to break-out long lasting range bounded trend (refer rectangular area on monthly plotting), the trend may little edgy as we see slight overbought pressure on this timeframe, more rallies on cards upon bullish EMA crossover.

Hence, bulls may resume any time upon these indications.

Trading tips: Contemplating prevailing bearish sentiment, on trading perspective, at spot ref: 1.1692 (while articulating) we advocate one touch binary puts for intraday speculators in an on-going bearish environment that is likely to fetch leveraged yields.

Currency Strength Index: FxWirePro's hourly EUR spot index is creeping up shy above 9 levels (neutral) despite today’s German factory order numbers, and French Govt. budget, trade balance and FX reserve, while hourly USD spot index was edging higher towards 90 (bullish) at the time of articulating (at 06:44 GMT). For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex.

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