Today was a very interesting day. If we take a closer look on the EURUSD pair we see that we have been given consistent lower lows and lower highs.
But on this Tuesday the market behaved differently. It provided us with a double bottom as seen with the numbers 1 and 2.
This was the signal that a change of trend for the 1 hour chart could be taking place.
We were given a nice up move of the daily range which for this pair is 80 to 120 pips.
Of interest is also to note that price went exactly to the 38.2% Fib level of the total previous bearish move.
Our bias for the euro is fundamentaly bearish so that shorts only should be taken on this pair.
The best entry would have been right at the Fib level.