- EUR/USD bulls moving in from daily support but bears eye hourly W-neckline.
- 50% mean reversion on H1 chart is compelling for sessions ahead.
EUR/USD has left a W-formation on the hourly chart as defined between the last bearish impulse to the lows, the correction that was followed by a subsequent drop only to rally again for a fresh corrective high.
This has left a neckline of the W-pattern on the hourly chart that would be expected to now act as support on a restest.
If this were to hold, then the bulls could be encouraged to pile in and drive the price higher. In doing so, the 50% mean reversion of the original bearish impulse that has a confluence with the old support structure that could be targetted for the foreseeable future, as illustrated as follows:
EUR/USD H1 chart
