Price has smashed lower, making a really powerful and commanding break of the major daily price action chart support level with a Breakout Bearish Engulfing Bar = BEEB.
If you move and go to your own EURUSD daily chart now and mark the same level that I have marked up for you below; you will see that this level is not just a short-term or quick rebound level.
This is a major daily price flip that price has been flipping at for some time breaking above and below. This level is a major proven both support and resistance level. Price had been in a super strong trend making a really big move lower, however; by the time 2015 came around price moved into a sideways range and it has not moved out of it since.
That is also where this major daily level became so crucial because when price started to flip higher and then flop lower, this level was caught right smack bang in the middle and price was often testing this level – multiple times.
The huge Bearish Engulfing Bar that price has smashed out and broken lower with is a really confident market move.
The two things you want to take note of and follow with this price action story are;
1; Where the BEEB closed or how close to the low it closed.
In other words; notice just how bearish it closed and very close towards the bottom of the candle!
2: Not only did the BEEB engulf 3 x previous candles on the way to making the strong move lower, but then it continued to close a long way below the breakout level. This is important for us because it provides the potential to now hunt intraday pull-back trade setups.
We can watch the price action behavior over the following sessions to see if price action makes any quick retraces back into this major price flip and if it does, then we can jump onto the 8 hour, 4 hour, 2 hour, 1 hour, 30 minute or even smaller time frames charts if you trade smaller time frames and look for A+ high probability bearish trigger signals like the ones I teach my members in the Lifetime Members price action courses to get short.
Daily EURUSD Chart
4 Hour EURUSD Chart
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