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EURUSD price action: candlestick tails betray Bull Bear struggle

EURUSD price action is showing tremendous volatility over a 16 pip range

This is evident from the very long candlestick tails that we can see in the 5-minute chart.

EURUSD price action

Long candlestick tails show the back and forth Bull Bear struggle over price

 

And if we zoom in to the 1-minute chart, the broadening chart pattern tells the same story.

volatility

1-minute shows ‘broadening chart pattern’

If you are scalper of 1-minute charts, good luck! Because there is simply no clear movement and plenty of sudden reversals. For a 16-pip high to low range, this is a small piece of ground to die for many times over.

 

Reasons for such volatility?

Could be any of these: range bound and waiting for some high impact news, genuine tug of war at a consolidation zone or a distribution since EURUSD is at a resistance on the daily and weekly charts.

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Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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