📊 Market Analysis#price-action#eurusd#analysis#candlestick
W
Wolf Alpha
Trader ·
Price Action Analysis: EUR/USD Morning Star Forming at Support
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EUR/USD printed an interesting daily candlestick pattern today worth analyzing:
The daily candle formed a near-perfect "morning star" pattern over the past three sessions:
- Day 1 (Tuesday): Large bearish candle closing at 1.0792
- Day 2 (Wednesday): Small doji at 1.0798 — indecision at support
- Day 3 (Today): Bullish candle opening above Wednesday's close, heading toward 1.0850
The morning star pattern, especially at a significant structural level (1.0790–1.0800 has been support 4x this year), is a strong bullish reversal signal.
Key price action observations:
• The doji wick touched exactly 1.0785 — below support, then recovered above it (possible stop sweep)
• Volume was elevated on the doji day (institutional absorption)
• Today's bullish candle body is growing larger, confirming buyers
This tells a story: sellers tried to break support, failed, and buyers are now in control.
Do you trade the morning star reversal pattern? How do you confirm it?