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EUR/USD: Polarity principle points to plunging prices
The world’s most widely-followed currency pair is reacting well to one of the most widely-followed technical principles: Polarity. For the uninitiated, the polarity principle refers to the tendency for former support levels, or floors under price, to turn into future resistance levels, or ceilings on price, once they’re broken (and vice versa). From a psychological perspective, a break beyond an established level of support or resistance represents a significant shift in market sentiment, and when traders see an opportunity to re-enter near the breakout level, they often seize it, creating the requisite ... (full story)