Last Friday’s (4/7/2017) non-farm payrolls (March) were anticipated to be much lower than February, and due to this foreknowledge the bears did not hesitate to re-open their short positions. This was confirmed by two extremely bearish candles that closed on the 4H chart at 5AM and 9AM Friday morning. We witnessed a very immediate and quite dramatic continuation of the previous downtrend that has been going strong since the start of the US session on March 28th.
Price was choppy there for a bit, but in the end the wedge was formed as predicted. I do not believe the short term up trend is over just yet, so if you are watching EURUSD look for a second reversal signal - this would be a BULLISH move/reversal candle that fails to break the 1.066 area.
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