Analysis of Japanese candles for EURUSD, USDJPY and EURGBP on 19.02.2021
In the 4-hour time frame, the EURUSD is developing an upward trend. After testing the support level, the couple created several reversal candlestick models, including hammer. At this stage, the signal development in the reversal patterns, which is aimed at 1.2190, may continue. At the same time, we should not rule out the possibility of a trade development with the withdrawal of quotations to 1.2050 before the test level 1.2190.
On the 4-hour USDJPY chart, testing the resistance level area, created a falling star. After drawing an analogy with previous price movements, we can assume that the development of the signal on a particular pattern can lead it to another correction. The aim of the withdrawal is the level of support – 105.30. In the event of a rebound from support, the quotations may continue the upward trend. At the same time, we should not exclude the possibility of a commercial development with the continuation of price increases to 106.30 without test support.
On the EURGBP 4-hour chart under the next level of support, hammer has created an upside-down reversal pattern. At this stage, the signal development on the reversal candle model may repeat previous scenarios and result in a slight correction. The target for reversing the resistance level will be 0.8700. At the same time, we should not exclude the possibility of a commercial development with a continuation of the fall to the 0.8615 mark without returning to resistance.
Financial Market Forecasts are private opinions of the authors. The current analysis is not a guide to trade. RoboForex is not responsible for the results of the work that may occur when using the trading recommendations of the presented reviews.