Traders will warily eye the US equities market as yesterday share prices posted a key reversal.
Key reversals are outside days either at contract highs or lows. A key reversal down occurs when a market makes a new contract high, then reverses down takes out the previous day’s low, and closes lower than the previous day’s close.
Yesterday’s price action was straight out of the textbook and with market bears itching for a fight, a pullback must be respected.
In EUR/USD, traders are wary of adding to longs anywhere near 1.4840, a level that has proven difficult to sustain so far this week. They would almost rather buy strength than weakness at this point, ie buying a breakout rather than buying at present 1.4795 levels. All eyes on Wall Street today!
