- Previous analysis on 6E hinted at a possible bullish reversal, now confirmed by strong bullish price action.
- The trade was high-risk but potentially high-reward, currently showing positive results.
- Technical analysis reveals a bounce off the point of control line in the volume profile indicator, with support expected at the $1,071 level. The next target is the resistance zone at $1,104, followed by a potential move towards $1,130.
Bulls take control
In the previous analysis I did on 6E, I mentioned the possibility of a bullish reversal. That has now been confirmed with strong bullish price action. The trade was a high-risk, potentially high-reward play, but it is working out at the moment. Take a look at the previous article here and the chart below:
6E has bounced off the point of control line for the volume profile indicator. The POC tells us where the most trading occurred in that specific time frame. The POC is sitting at $1,071, and 6E is currently trading at $1,089. It is not out of the question for the Euro to drop back down to the POC, but we can suspect a high chance there will be support at that level.
The next level to target is $1,104, which is a resistance zone formed from the previous high on the daily chart for 6E. A break above that, could lead us to $1,13, which is an accumulation zone that formed back in January.