Looks like the price bounced of the interim support (pinbar) and consolidated before a move up (inside bar). The sentiment is confirmed by divergence in RSI. However it is also possible that the move down is not complete yet as the price did not reach 86.2 which seems to be the solid support level. A buy stop order will save me in this instance.
A lot of opinions about what is happening in EU at the moment. I see it as 4rth wave in the form of expanding diagonal. Or may be it is 5th wave in expanding diagonal. Either way the odds are for the new high and the recent pinbar is the PA confirmation for this trade. RSI shall not make a new high marking the end of the trend up and beginning of long expected ride down.
EURUSD drew two price action patterns on Daily TF - inside bar and pinbar both bouncing off the interim low and in line with existing trend. At lower time frames EW looks incomplete.and assumes one more leg up. This is also supported by look and feel of GU, NU, AU and DXY.
So hard to stay in shorts after such moves. Nevertheless the price did not violate my previous count but completed it. Fundamentals support strong dollar and the last abrupt move can form right shoulder of the H&S pattern. RSI at lower time frames also indicate exhaustion of the move up and on higher time frames more leeway to the downside.
Waiting and learning.