Will EURUSD pop or drop, long side looking a little better...We're at a crossroads on EURUSD, with recent pops on the pair one of 2 things can happen. A break out higher to 1.14 or a drop back down to the 1.105 level.
We'll make the case for both below:
1. Bull Case: Currently, the daily candle is long and strong with no or very little wick, meaning the buyers are strong on the move. It broke above the previous resistance level at 1.118, we wanted to see a wick form there and a failure below for the bears. What we could see is a move into 1.1235 and a drop retrace to the broken double top and continue up to 1.14. over the past few months price has been in an uptrend without printing a new low, if market structure holds then we will see a new high.
2. Bear case, price fails and forms a strong wick before the day ends and closes below 1.1178 for potential sell entry. You have to watch this on an intraday chart a 4-hour chart to identify the rotations and the long wicks to confirm. Alternatively, price can move up to the next strong resistance at 1.1235 before failing.
