EURUSD - Retest of the Top or Time to Drop? Price has had a recent surge up to Daily Highs and looking at the daily time frame you will see the huge wick that was formed on the Daily close yesterday.
Price has been moving in this descending channel for weeks and respecting the trend line. the last couple of days has been the first real break, is this a fake out, surge for liquidity or is this change of trend.
For me I want to see a clear break below the trend line and a clear rejection before taking any shorts. We did have what looked like a break and retest only for price to crawl back higher. There was some confluence when price came close to the 0.618 fib and then moved higher.
Currently we are in a channel between the bottom of a 4hr wick zone and the top of a 1hr wick zone. If we break above and reject the 1hr zone we could see a retest of highs around the 1.18400 area which would give the ideal place to short if we get the right rejection / exhaustion from this area.
Time to sit and watch and see if there can be more confluence added rather than just rejection.
