Japanese Candlesticks Analysis 18.02.2020 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the descending tendency continues. By now, EURUSD has completed several reversal candlestick patterns, such as Inverted Hammer, close to the support level. Right now, the pair may start reversing. We may assume that later the price may test the resistance level at 1.0920 and then resume its decline to reach 1.0790. However, one shouldn’t exclude the possibility that the price may continue falling without reversing and forming any rising structures.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is still moving inside the rising channel. After forming a Hanging Man pattern, the pair has reversed and is currently trading sideways. The current situation implies that the pair may finish the correction and resume growing to reach the resistance level at 110.20. At the same time, the pair may choose another scenario, according to which it is expected to return to 109.20 without testing the resistance level.

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, EURGBP continues trading close to the support level, where it has formed several reversal patterns, such as Harami. Right now, we may assume that after reversing the price may grow towards 0.8393. However, one shouldn’t exclude an opposite scenario, which implies that the instrument may break the support level and updates its closest lows. In this case, that the pair may continue the descending tendency without any corrections to reach the closest target at 0.8282.