EURUSD Moves Higher In-line With Weekly Engulfing Bar | 23 Oct 13

Price on the EURUSD daily chart has shot higher after the weekly chart produced a bullish engulfing bar (BUEB). The key to price moving higher was that it was able to move out of the range area on the daily chart and close above. I talk about how this works in-depth this in my recent article & video that can be found here: Price action secrets traders can read. As we can see on the chart below price was stuck below this range area and price could not break above. The key to price breaking above was when price managed to close above on the daily chart. Once this occurred the resistance flipped from being an old resistance to being a new support. We can then see price acted and held as a new support level.

Price has now shot higher and closed near the session highs. This move was in-line with the current strong uptrend. Traders could start looking for trades with this strong momentum and trend on both the daily and intraday charts should price rotate back lower into value areas and produce any bullish price action signals for traders to get aboard high probability trades.

EURUSD Daily Chart