EURUSD cleanly broke through the topside of a descending trend channel last week and continued higher to briefly pierce minor resistance levels near 1.0680 to make a high at 1.0695.
The price action on the day that the price made that high saw a Bearish Engulfing Candlestick
formation emerged and it has gone lower in the proceeding days.
A Bearish Engulfing Candlestick opens at, or above the previous candle’s close. The length of the bearish candle ‘engulfs’ the previous green candle and it then closes below the prior candle’s open.
This reversal might signal that the descending trend may re-emerge.