Will EUR/USD spinning top signal impending weakness?
EUR/USD has had a week to remember, with the pair pushing through to a new five-month high on Friday. However, Friday’s daily candle posted a spinning top, marking indecision. With the traditional NFP volatility creating new highs and lows on that day, we are looking for further signals to follow on from those moves.
The hourly timeframe shows that we are seeing weakness early into the session. The key level to be watching for a possible strong reversal would be 1.1335, where a closed hourly candle below this would point towards a deeper pullback with 1.1291 and 1.1257 in view.
However, until that happens, we remain within an uptrend and there is a good chance we will emerge from this NFP volatility in the direction it entered it. Thus an hourly close above 1.1412 would point towards a possible move back to 1.1438 and even onwards to 1.1495 resistance.