Last time we looked at the EURUSD market we spoke about the high chance of a pending mean reversion move from the resistance level. We did see a bearish mean reversion, but the move wasn’t violent like they usually are and was terminated very quickly. This is a good indicator that the bullish pressure here is still high.
We can see the market corrected close to a swing level and picked up aggressively from there, with the trading day closing as a bullish rejection candle with close price higher than the opening price for the day – a nice bullish sign.
Now it’s likely the trend will pick up strength from these temporarily weakened priced and potentially break the overhanging resistance. Personally I would have loved for this signal to actually form off the level marked on the chart (old consolidation resistiveĀ containment line).
Good luck on the charts out there.
Nazmul Haque
Waiting for a Bullish movement. š