During past few days we could became pretty convinced, that there is a strong sentiment on this pair. On Friday, after terrible outcome of non farming payrolls, EUR/USD created a long upper shadow and today with below-consensus results of ISM report we’re going to close much lower. Those shadows can lead us to lower levels on EUR/USD, but probable fall might be limited.
We can also try to look more widely, because up channel in which price currently stay was tightly respected. From now, we can say that possible down range on EUR/USD is the bottom line of this channel.
[pullquote] Try out FxGrow and lower your spreads immediately. [/pullquote]Classic pinbar which came into the picture in local supply zone might be announcement for further decrease. We can easily tell from the chart, that past few days on EUR/JPY supply was playing the first fiddle. This signal is compatible with trend, and possible range is September 4th low. On the lower interval we can can recognise powerfull 1:1 pattern, in which both of corrections are the same size. After completing the pattern, the price suddenly droped lower, which is the main cause of pinbar candle on D1 chart. This mean that sell signal here is really strong, and it might be the first day of EUR getting lower.