EURUSD price movement has stalled during the last two week as price boxed up and churned above a support level that was aggressively broken prior to the consolidation. Earlier during this weeks trading the market took a dive back down below the support level and actually close under.
The market was unable to maintain these lower prices, which was evident the following day when the bulls pushed the market back up above the level closing as a bullish rejection candle. EURUSD did close higher than it’s open price and also showed rejection of the mean value area. If prices break the highs of the rejection candle we could see the next extension upwards by the bulls.
Trade Update
A good response from the bullish rejection candle last session as the bulls followed through nicely off the strong rejection of moves lower into the mean value. The market had now exploded into a strong resistance level and the aggressive bullish acceleration has gaped price away from the mean value. So, this would be good level to consider taking profits as we can start to anticipate a bearish mean reversion move from this extended prices.
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