We had what seemed to be a break of 1.14164 after long periods of rejection. What happened next? Price closed back in the range, immediately taking out long traders who had their stops below 1.14164. In as much as we are in no mans land, with the bulls and bears fighting it out for supremacy, numerous trading opportunities await. The eclipsed region highlights something of importance; bears clearly dominate around 1.14164 and can push the price further down to 1.13824 & 1.13653 where buying pressure may come in. It would come as no surprise if price drops to the bottom of the range and up once again in a rebound manner as the bulls and bears tag it out. Of most importance would be to buy support and sell resistance STRICTLY with supporting confluences.
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1st Target hit
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Certainly a win-win for both Bulls And Bears shortly after hitting the first target price tanked down to 1.13653 where it found bullish pressure as expected, made a pullback and continued with its decline to the next support area. From here taking a trade at the bottom of the range would offer a favorable risk-reward keeping in mind the incoming interest rate decision.
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Draghi's Dovish tone acted as supporting confluence to the hourly supply zone that served as my entry point and rode sells for about 73pips with my target slightly below 1.13128. As indicated, price would be making its way to the bottom of the range which is now 10pips away.