Price has been ranging, showing signs of (vertical) absorption of supply (re-accumulation), on a diminishing volume over the phases. Now price is trying to overcome the level of the upthrust UT of phase B. I expect a back up to either the UT lvl or BC lvl for testing.
(this can still turn out to be a new upthrust if institutions see value at this higher pricelevel...
Price failed to make higher high and break the supply edge of the range. Absorption at the supply.
Downward ease of movement backed up by increasing volume.
Supply channel forming.
Still some demand present, but markdown imminent.
Low risk entry would be a succesful test after a break down.
Price moved into a range effectively stopping the downward movement. Volume rises progressively during the selling with high volume spikes near the demand edge of the range.
note: Draghi held his speech during the trading range.
After a sign of weakness (selling into the large up candle) at the supply zone, price has reached the zone again on low volume.
Watching price action for a reversal or break on high volume above the supply zone.
This analysis is purely technical, no fundamentals have been taken into consideration.
EURUSD has been ranging - broke above (making a head and shoulders pattern) the channel - and went back into the range.
Now the upper pole of the channel has been reached again. We see confluence with the supply trendline, upper S&R of the channel (neckline HS pattern) and a...