We spoke yesterday about EUR/JPY blowing through double top resistance and price action in the aftermath suggesting huge bullish momentum.
The key quote that I wanted to extract from that post is the following:
‘…and if Draghi doesn’t backtrack, then any short term pullbacks could be seen as juicy buy signals.’
Well funnily enough, it turns out that the ECB backtracking on Draghi’s behalf actually gave traders that juicy buy signal that we were waiting for across the Euro focused forex pairs. Have a look at some of the headlines that caused the spike down:
Now take a look at both the EUR/JPY and EUR/USD levels that I’m referring to on the charts below. The daily charts show the higher time frame resistance level that Draghi’s speech saw price break out of. Then if you truly did believe in the bullish momentum behind the Euro, the intraday charts show simple areas of interest as the perfect pullback zones to buy into:
EUR/JPY 15 Minute:
EUR/USD 15 Minute: