EUR/USD: long shadow points to coming local correction
The price has been rising since a pullback from the lower “Window” happened. So, we’ve got series of bullish patterns such a “Hammer”, an “Engulfing” and a “Three White Soldiers”. The last candles are bullish and there isn’t any reversal pattern so far, which makes possible an achievement the nearest resistance line. As we can see on the Daily chart, here’s a “High Wave” at the local low, which has been confirmed enough. However, there’s an opportunity to have a local correction towards the middle of the last huge white candle.
Bears haven’t broken the lower “Window”, so bulls are in the game again. Considering a long shadow of the last white candle, the market is likely going to have a local correction during the day. At the same time, if any bullish pattern arrives later on, buyers will probably try to deliver a new intraday high shortly.