January was a month of a strong oversell of USD what was reflected on EURUSD chart. For a month pair is in medium term uptrend. Will inside bar help to specify further direction of changes on the chart?
First inside bar is being created right now on daily TF. After yesterday’s candle reminding bullish pin par, today on EURUSD we can see a correction. D1 chart looks interesting because 1.0670 area was tested in the past and few times it was a pivot point on the chart. Wednesday’s candle in connection with green area and vicinity of 21-period moving average cause appreciation seem more likely than deepening of decreases.
Situation looks more clear also on H4 chart. Although it is not my favourite one, it clearly shows higher highs and higher lows. We can be only worried about decreasing dynamics of gains. The difference in distances between green areas are smaller what can indicate loss of bullish momentum.
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Currently we observe creating of another inside bar in the area of mentioned 1.0670 level. On the lower time frame the position of moving averages indicate depreciation and bearish Inside Bar pattern only confirms it. In this scenario test of last green area looks natural and also creating of lower high around 1.07. In case of bullish domination the target of gains will be last indicated with red circle high.
