Overnight the EURUSD has formed a Bearish Engulfing Bar (BEEB) on the daily chart. Whilst this BEEB has formed towards a low, it is rejecting resistance and has closed well lower off the daily highs.
Price during the daily session moved higher into a key level for this market where resistance was tested. Before long bears jumped into this market and smashed price back lower keeping this resistance intact and forming the BEEB.
From here if price is to move even further lower it is going to have to break the low of the BEEB and then some minor support levels that come in close below. If price moves back higher the first major resistance of note is the same level this BEEB is rejecting.
EURUSD DAILY CHART | 15TH MAY 2013
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