The EURUSD took one last squeeze from the short “orange”, and the price moved nearly to the July 10th high. Nearly the entire 10 day range was retraced (from July 6th to July 20th) in 6 hours. Ironically (or perhaps not), the whole thing started when the price moved above the July 13th low at 1.2162 (see hourly chart above). Now is the time to consolidate.
Looking at the 5 minute chart the price is down testing the support at the 1.2286. I sound like a broken record, but this was the June 1 low and also was the high from earlier and low after the break. Needless to say, if the price is to correct lower today, it must move below this level. If not, there will continue scoop for the upside – even if it consolidates between 1.2286 and 1.2333. If it gives way, I will be looking for the consolidation to find support at 1.2245-55.
