As I’ve opened that charts at the New York close of the last Forex session, I spotted an interesting situation on the EURUSD daily chart. Price has rallied up to a major resistance level and dropped a bearish rejection signal. Now this signal is against the current momentum but if you zoom out on the chart a little it tells a different story. At the moment there is no longer term trend, this pair is moving sideways from a larger perspective.
Now every time price has recently touched this resistance level, the market produced a sell signal, which price followed through with in the next few trading days to come providing highly profitable trades. This is the 3rd time price has rallied to this resistance level and produced a sell signal. Price action traders looking to short this can wait for a break of the low to confirm bearish momentum, or alternatively use the advanced entry techniques from the Price Action Protocol.