SPOTTING EARLY TREND REVERSAL | EURUSD

Jun 8, 2021

Hey traders,

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.

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Jun 9, 2021

Note

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