There’s no denying that the EURUSD rally is intact. The pair has made an impressive run throughout 2017, and the technicals still look relatively healthy.
However, there is one pattern that formed a couple of weeks ago that is cause for concern if you’re a bull.
The pin bar that formed on the weekly chart after testing the 1.1875 handle remains a threat even after last week’s rally attempt from 1.1670 support.
What’s interesting is that the 50% retracement of that weekly pin bar is near 1.1820. Note that the August 8th high was 1.1823 and last Friday’s close was 1.1820. So it seems buyers are having some trouble breaking this level on a daily closing basis.
Now, that doesn’t mean the EURUSD is gearing up for a significant pullback. As I mentioned above, the rally is very much intact, and the technicals still look favorable for the bulls from a neutral standpoint.
It does, however, suggest that the odds of a significant pullback for the single currency remain elevated. But in my view, the only thing that would actually challenge the current uptrend would be a daily close (5 pm EST) below the 1.1670/90 area.
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Great Justin, thanks. I did some candlestick analysis before monday but did`nt noticed that the Weekly pin bar as marked by you. At least I have some additional guide from your article. Thanks again.