As a result, EUR/USD extended the decline in the European session. But, it reached a certain level where the sellers decided to call it a day and close their trades. That level was 1.1690, which doesn’t really hold much importance by itself.
But, the 100 (red) is standing right there and this moving average has provided support before. It appears that the sellers saw the chart history and decided to close their trades, for now. The previous hourly closed as a which is a reversing signal. So, that indicator also played a role in the latest turnaround.
Now, EUR/USD is around 30 pips higher, but I don’t see this as a move. Looking at the below, you can see that yesterday the price formed an upside down . That is a reversing signal after an uptrend.
Today’s looks pretty as well, which reinforces the turnaround in this pair. Besides, the indicator is overbought and turning down now, so the move is compete and now EUR/USD is entering a phase.
With this chart setup in mind, I will wait for the latest bounce to be over on the H1 chart and then will look to open a sell trade. Perhaps, the 50 would be a great place to sell, but only if the buyers manage to push that far.