EUR/USD: "Hammer" & "Harami" highlight possibility of bullish correction
The middle of the last huge black candle acted as a resistance, so we’ve got an “Engulfing” pattern, which led to the current decline. However, the price formed a pullback from the closest support line, which makes possible an achievement of the nearest “Window”. As we can see on the Daily chart, the last “Harami” hasn’t been confirmed. Therefore, we don’t have any reversal pattern so far. To sum up, there’s possibility to see a local upward correction, but bears are still in the game, so new lows are very likely.
There’re a “Hammer” and a “Harami” at the local low. So, the market is likely going to a local upward correction in the direction of the nearest resistance level and the 34 Moving Averages line.