London morning when I had a look at the EUR/USD chart, I penned down following bearish developments
- Doji candle at rising trend line hurdle
- Tuesday’s close was below rising trend line hurdle
- Spot failed to take out 200-DMA
Thus, I expected a sell-0ff and it did happen as the pair dipped to a low of 1.0946 levels, only to snap back sharply in the NY session to 1.1035. I wasn’t expecting this and it did caught me by surprise.
Now when I look at the chart, It looks as if bears just lost control..
A sharp snap back to 1.1030 (trend line hurdle) despite all the bearish developments mentioned above.
So is it time to go long?..Not yet, because the 200-DMA hurdle at 1.1045 is still intact. If I see a daily close above 200-DMA today, I would not mind entering into longs with short stops during early London session tomorrow.