Trying to gauge a shift
The EURUSD corrected to the 50% of the last move lower at the 1.05947 (high reached 1.05952).
In a trending market, it is all about control. I am sure there are some who feel the market is oversold. But is it? The RSI says so a the low 20s for the 15 bar RSI on the hourly chart, but we know it can get more oversold. Trends are fast. Trends are directional. Trends tend to go farther than traders expect.
What might show the buyers are taking control?
Get and stay above the midpoint of a "leg" lower. That is the minimum for traders to entertain the idea that the anti-trend traders are taking back control.
Looking at the 5 minute chart, you can draw a channel and so there is a level to lean against on the bottom (and traders did on the first test). So this does give something below on the intraday chart to lean against, but overall, the bias is still down. If you buy, what you want to see is to see the price get above - and stay above- the 1.0595 level. However, if it goes below the lower trend line at the 1.0560 area, I would be cautious.
