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?

price action angle 2ndskiesforex march 1st

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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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Gabe M

    What makes this story most interesting (to me), is the 3350 level. I agree that action past this point to the upside clears the way to the upper limit. Nothing like reading an article from you Chris to kind of confirm my idea. I’ve been looking for the Z formations for reversals…this article just made my week!