Morning guys,
Despite great volatility yesterday we've moved nowhere. On daily market EUR still stands around the same 1.1360 resistance area forming two side by side doji. Bulls could say - this is good, because market stands tight to resistance, showing just minor 3/8 pullback, while bears could say that EUR can't move higher, so, this is indeed some sellers' pressure exists around. And both sides are right.
But what we should do?
On 4H chart our 1st engulfing setup is valid as market was not able exceed its top. Second - we've got another pattern of the same kind, which also a bearish grabber:
On 1H chart yesterday action was "222" Sell patten as EUR has completed AB-CD action. We have new downside AB-CD, but as OP as XOP mostly stand at the same place.
In current circumstances bears could take short position against the highs, but only with bearish pattern on the back. It just provides minimal insurance for stop moving to breakeven. For example - "222" Sell that we could get around 1.1350.
For bulls it would be better to wait upside breakout. Taking position now assumes risk that overcome phantom advantage of earlier position taking, because if rally will continue, it should be for solid distance up and taking position a bit later, after upside breakout will not make it worse.