trade with caution and keep stops tight until the pair decides what it wants to do is my opinion. The pair is majorly overbought but not enough to go on for a bounce. The longer the pair idles near support the more chance we will get a break of that support, in my opinion. I am going to sit on the sidline for a moment. These scenarios are the times i get burned the most so i am trying not to get burned again. those are my thoughts. Happy Pip Hunting!!!
My thought is we move higher - the 4 hour and D have some very bullish candles and this pair is due for a correction based on the steep move down. We've just put in a .786 ret of the bullish 4 hour candle and looked poised to go 4900-50 to re-test previous s/r. If we break the 4630 sup area, all bets are off.
I pretty much agree with your assesement. EURO is due for a bounce. There's a bunch of data coming out in the morning that should clarify things. My tendency in these situations is to sit on the sidelines waiting for further clarification, which is what I'm doing now. One of the disadvatages is that I tend to miss out on the initial phase of a "move", but I'm a fairly conservative trader and would rather be late and right (Possibly missing out on some good initial Pips), than early and wrong. Anyhow, thanks all for your observations. It'll be an interesting next few days...