Yesterday, the EUR/USD pair failed to update the local high of 1.1830, which resulted in a pullback in the direction of 1.1800, where it stopped.
The so-called “awkward price behavior” occurs when the shares of buyers and sellers are equal, which can subsequently lead to an acceleration in the market, but we’ll talk about that more later.
The range of 1.1800/1.1830 is brought together by the level of 1.1810, where the market stopped systematically. Now, we understand why there was an awkward price fluctuation and relatively equal market shares in this particular area.
Relative to the current fluctuation, you can see a characteristic slowdown, but as soon as one or another border of the previously described area is broken, there will be a local acceleration in the market.
Based on the location of the quote and the behavior of market participants, you can make a trading forecast from a number of possible market scenarios:
First, the bulls won.
The upward trend previously set in the market persists, which leads to an update of the local high of 1.1830, and this will direct us to a subsequent movement in the direction of 1.1870.
Second, the awkward swing ends in a bearish rush.
We should not forget that since the beginning of September, the market has been experiencing a downward tact, where the current movement is only a corrective move from the low of 1.1612. Thus, price consolidation below 1.1785 will lead to a surge in sellers, which can trigger the recovery process relative to the correction course.
The material has been provided by InstaForex Company – www.instaforex.com
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