SPOTTING EARLY TREND REVERSAL | EURUSD
Updated: Feb 3
As you know, I am very bearish biased on EURUSD .
On a daily, the price respected a major key level and also broke a rising wedge pattern to the downside.
On intraday time frames, with classic price action rules, we can easily spot a trend reversal:
The price was trading in a bullish trend.
The uptrend was confirmed by a sequence of higher highs and higher lows.
1.2267 is a local structure high.
After a retracement to a new higher low the price set a lower high (a very important bearish clue).
Then the price violates a previous higher low level to the downside setting a new lower low.
With a sequence of two lower lows and lower high, we can confirm a bullish trend violation and initiation of a new bearish trend on 8H chart.
Now we are waiting for the completion of a retracement leg in a zone between current spot prices and the level of a previous lower high
and a consequent bearish continuation.