Last week the EURUSD formed a Bullish Engulfing Bar (BUEB) at an extreme low. From this BUEB price has broken higher and moved into resistance.
This is the second time in the last week that price has tested this key resistance. What price does from here is crucial to where price may go in the near future.
If price can break this resistance we may have the next up-move. If however price is rejected solidly a move to retest the recent extreme lows may be on the cards.
The best play at the moment may be to sit aside and wait for a decisive move either way. Once price has moved through or away from this resistance zone it will be much clearer what side of the market is best to trade on.
EURUSD DAILY CHART
Leave a Reply