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Forex Trade Signals and Setups Mar. 1st
EURUSD – Where Is the Follow Through?
After forming a double top just shy of the big fig at 1.3500, the pair sold off and did so with a punch, taking out the prior PL (pullback low) point, then used it as a level to reject off of and continue the sell-off. However, price action just stopped on 1.3290 which as you can see in the chart below is a prior resistance level now acting as support. So one has to ask the question, if the selling was so strong off the double top, where did all the sellers go and why no follow through?
With the price action selling changing angles so fast, it almost suggests the offers had gotten absorbed into the 1.3290 level and the bulls are going to make another attempt higher. Should this level hold, bulls can look for price action clues around the 1.3350/65 level. Should this get broken, then we expect a move back up to challenge the prior highs and double top at 1.3485.
On the flipside of this, should the pair break below the daily 20ema, then we will expect the selling to continue with price gunning for 1.3200 in a jiffy.
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