The markets have been very churned up this week so traders should be extra vigilant with their trading decisions. It is hard to find good PA setups at the moment, and is probably going to be one of those ‘hurry up and wait’ weeks.
Looking at the EURUSD today – an inside day recently formed within some bullish market momentum. We’re sitting right under some resistance here, but because price is now closing on the bullish side of the mean, and the mean value was starting to vector upwards – we were looking at a potential bullish breakout.
Now the situation has changed just by one candle, with the daily chart is communicating a different picture.
It’s always tricky trying to anticipate price moves when the market is moving against a major trend. Is it a reversal, or just a temporary correction? I guess when in doubt stay out.
Resistance clearly held last session, there was a bearish breakout trap and reverse trade and essentially this is a sell signal. The candle closed as an Outside Day/ Thick Body Rejection Candle.
If the setup plays out, we could be looking at a re-test of the recent weekly swing low. I almost looks like this market wants to start ranging.
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