Forex Price Action Setup Oct. 4th
Selling off consistently for the last 500pips, the EURUSD formed a short term bounce off the 1.3150 lows which we find a little strange….Why? For one, there is constant pressure about a possible (what we think is eventual) Greek default becoming more likely everyday with Dexia, the Belgium bank (Top 20 in Europe) ironically being the first casualty of the situation looking set to break up the institution. Yet the Euro rallied today 200pips to touch the 20ema on the 4hr time frame.
But here is where it became interesting as it formed a Pinbar setup (click the link to check out a similar setup on silver) off the 20ema and 38.2% fib of the downmove. Look for this to hold short term rejections and should it do so, expect a return back to the 1.3150 level.
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