EUR 1hr higher low after divergence, engulfing 2 candle close

We did have a bias for selling GU and EUR this morning (sold GU earlier) but noted the EUR support level/trend line/W M2 pivot confluence and the possibility of a bounce up.


We do not believe in taking trades from one candles move as a general rule. The EUR low from 1 June provided support for the past few days around 1.2260/80. We had 1hr divergence at that proven support area, a higher low and a candle close engulfing the previous two candle closes.

Four reasons to buy (support, divergence, higher low, engulfing close) over a multiple candle pattern formed over the last 24 hours.