The euro bounced back up again for about 150 pips to form a new high and recoup all of its losses from yesterday, which was not expected so soon.
This led to the formation of a railway track candlestick pattern on the daily, consisting of two nearly identical bars in opposite directions. This is a common reversal signal at the end of trends, but since no clear trend is in effect, this pattern may not be very reliable.
When the market keeps bouncing up and down like this, I usually examine the pattern closer to decide whether or not it can fit as a triangle, but unfortunately it doesn’t in this case. The best option we have right now is to play this analysis by ear, refining our view as each new batch of price data comes in.