FX CHART OF THE DAY: EUR LIKELY TO REVERT UP TO ITS MEAN
After a sharp up move earlier this week EURUSD has retraced its gains significantly.
However it did not yet enter a downtrend on weekly basis - price is returning to its 1st standard deviation from weekly (120-h) mean amid compressing volatility (marked by 3.2 st deviations from the mean)
Thus the price is likely to revert up to the weekly mean within a day or two
Traders can pick long positions close to lower 1st st deviation from weekly mean (1.1270) with stops below relevant lows (at 1.1190) and target the mean (at 1.1410)
Traders also should mind calendar events coming out on FRIDAY!=)
However it did not yet enter a downtrend on weekly basis - price is returning to its 1st standard deviation from weekly (120-h) mean amid compressing volatility (marked by 3.2 st deviations from the mean)
Thus the price is likely to revert up to the weekly mean within a day or two
Traders can pick long positions close to lower 1st st deviation from weekly mean (1.1270) with stops below relevant lows (at 1.1190) and target the mean (at 1.1410)
Traders also should mind calendar events coming out on FRIDAY!=)
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