EURUSD posting a large daily pin bar


The EURUSD pair has been rising sharply since May, and the euro touched 1.19 today before selling notably. During the US session, the EURUSD pair was trading somewhat lower on the day, completely erasing daily gains.

Moreover, the daily candle now looks like a large bearish pin bar, which is a reversal pattern. That might mark the end of the current uptrend in the EURUSD pair. At least from the short-term perspective.

First of all, we need a daily close like this. Then, the safe way to play the reversal would be to wait for another 20-30 pips down, and later a trader can try to short this pair. The stop loss is usually put above the current highs; in this case, it would be placed above 1.19.

It is hard to define any targets for a reversal since the trend has been steep. However, the pair might retest previous highs near 1.14 before running higher again. 

Alternatively, if the euro strengthens during the US session and the daily candle closes above 1.1850, this formation would be invalid, and the EURUSD pair could continue rallying higher. 
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