EUR/USD: next sell target
• EUR/USD reversed twice from resistance level 1.1500
• Next sell target - 1.1125
EUR/USD recently reversed down twice from the resistance area located between the resistance level 1.1500 (former support level which reversed the pair in January, as you can see below) and the 50% Fibonacci Retracement of the earlier sharp downward impulse (v). Each time the pair reversed from this resistance area – it created the daily Japanese candlesticks reversal pattern – Bearish Engulfing.
Two consecutive bearish Japanese candlestick signals heighten the probability the pair will decline further in the nearest time – in line with the overriding downtrend that can be seen on the daily EUR/USD charts. Also – the daily RSI and Stochastic indicators are both trading in the neutral territory – which signals that further losses are likely toward the next sell target at 1.1125.