EUR/USD, fail brake and fight for return!
Euro doesn’t give up and tries to recover from the loss and fail brake on Friday. Must say, that fall bellow 1.0500 could be a SL hunting, while EUR/USD was recover on Thursday all the way to 1.0683 high, but it was return latter and hardly push down on Friday afternoon, with no particular reason. 1.0500 didn’t manage to hold, but the week was closed only 4 pips away. Last night, the pair opened at 1.0485 and broke easy true the 1.0500 where euro find support at the European opening. As you can see, this is tricky level now, with down trendlines and support/resistance levels in tight area and all we can do is watch how the pair will handle this today. The pair looks bullish, but it want be easy to brake this resistances on the way up.
I agree that this is a difficult one. There is a good argument to be bullish and an equally good argument to be bearish. Todays candle which has now just closed is a piercing pattern which is a bullish reversal candle formation. Wednesday and Thursday’s candle pattern was also a piercing pattern. Also since last Wednesday the price action has made lower lows though they are the smallest lower lows for a while. All of this indicates that the bears may be getting tired and the short move is at an end of a while and there will be the much overdue retracement. On the other hand the short trend is still very much intact and while it remains intact the trade should only be selling rallies. Whilst I can very much see the reversal argument, I do feel the trade must be selling rallies.
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