Since the Euro ended last week with a false break, over the last two days the regional currency formed an inside bar, while today posting a combo pin bar. What I find interesting about these two is how the last two bars are contained within the larger bar from Friday, particularly inside the rejection area of Friday's price action.
To make this more interesting is how the close today was just below the Friday close, communicating possible downside pressure in the short term. From a daily chart perspective, there may still be some bulls who will look at this opportunity to form a higher low and squeeze the bears out.
Although I favor the former scenario a little more, the latter is possible. However, considering the upcoming ECB meeting this Thursday, we'll likely see more consolidation so range plays should dominate. Short term, bears can sell just near the days highs with stops just above 1.2650 targeting 1.2565 for good R:R. Bulls will meanwhile want to wait for a breakout above the 1.2650 are before adding longs, or wait for a corrective pullback towards 1.2500 before stepping in.
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