Time for a EURUSD pullback?
We have had an extremely bullish trend on EURUSD over the past two months, with only one real pullback in that time span. We have a great Weekly support/resistance level at around 1.19 with clear deceleration / loss of momentum clearly shown on the daily chart by the recent candle formations. On the lower timeframes, being the 4hr and 1hr we have a clean head and shoulders pattern forming.
When a position has a lot of eyes on it like this will due to the parabolic nature of the run, we have to imagine bigger players in the market will be looking to enter too, firstly a lot of profit taking will happen here and we may expect to see some form of stop hunting to open up liquidity for larger players to enter the move. Therefore a limit order can be placed at the obvious stop placement area, or we can just watch too see how price develops.
Disclaimer: All my ideas above should not be interpreted as financial advice.
When a position has a lot of eyes on it like this will due to the parabolic nature of the run, we have to imagine bigger players in the market will be looking to enter too, firstly a lot of profit taking will happen here and we may expect to see some form of stop hunting to open up liquidity for larger players to enter the move. Therefore a limit order can be placed at the obvious stop placement area, or we can just watch too see how price develops.
Disclaimer: All my ideas above should not be interpreted as financial advice.
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