EUR/USD Formed a Shooting Star Candlestick Last Week and this Could Be the Beginning of a Correction to the South

In the past week EUR/USD reached the resistance trend line of the overall bullish trend on the weekly time frame and formed a very clear shooting star candlestick on the same time frame. Such a candlestick tends to be a very telling signal for a reversal and in this case it is a signal that before the pair continues climbing a bearish correction is about to begin.

I am examining the weekly time frame and I am thinking that the move to the downside will probably reach at least 1.1160, which is a strong support level visible on the same time frame.

Also, I am becoming more and more convinced that the bearish trend that has continued from May 2014 until November 2015 is over and sooner or later the pair will start climbing again once the aforementioned correction ends. I will elaborate on my reasons for thinking so in a future post.