With that being said we were previously in a downtrend on EURUSD forming lower lows and lower highs. During the down trend the most probable trading set ups were to wait for price to break out of short term corrective pullbacks to the downside and then get short to ride price down with the overall trend.
Lately however we have been seeing price form higher lows and higher highs and break above previous lower highs from the downtrend, this is might tell us that the trend is changing. We also have a HUGE miss on NFP which is bad for the dollar and that is why we are seeing major upside movement on foreign leading currency pairs. NFP has the ability to spark long term bigger picture trends and we may be witnessing the spark of an uptrend on this pair and other foreign leading currency pairs.
For these reasons if we see a bit of a slow downward moving corrective pullback that finds support near the 1.2200 level we can look to buy the break out of the pull back for another move to the upside in an attempt to ride with the underlying trend.
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