EUR/USD Candlesticks and Ichimoku Analysis

	Last Candlesticks pattern	Time of formation	Trend bias
Weekly	Morning star	01 Mar 2009	Up
Daily	Doji	04 Aug 2009	Up

The single currency continued to head south after early breach of support at 1.4218 and last week's release of better-than-expected U.S. GDP data put extra pressure on euro and price just fell below the Ichimoku cloud top, adding credence to our bearish view (indicated downside target at 1.4015 has been met) and further weakness to 1.3801 (50% Fibonacci retracement of 1.2457-1.5145) would be seen and possibly towards support at 1.3739-47 (previous resistance turned support), however, sharp fall below the Ichimoku cloud bottom (now at 1.3721) would not be repeated and reckon 1.3653 (100% projection of 1.5145 to 1.4218 measuring from 1.4580) would hold on first testing.

On the upside, whilst recovery to 1.4000 cannot be ruled out, resistance at 1.4218 (support turned resistance) should hold, bring such a decline to aforesaid downside targets. A breach of 1.4218 would indicate low has possibly been formed and risk stronger rebound to 1.4335 but reckon minor resistance at 1.4415 would hold from here.

Based on ActionForex.com Technical Outlook