Last week we seen the EURUSD rally explosively into higher prices and break through the previous swing high. Friday produced an inspection candle as the upward momentum stalled. We know markets don’t move in one direction like this, so we can expect a retracement to occur soon.
The market has opened up this week gapping down from the indecision day, correcting back towards a level which is anticipated to act as support. Watch this level for bullish price action reversal signals like bullish rejection candles, or bullish outside days as a chance to position in with the uptrend.
Alternatively, if the price doesn’t find support there and the market falls below, watch for counter trend rallies into the level, re-testing it as resistance for short opportunities.