NOTES ON CONFIRMATION BIAS

This purple box is a moment to remember how easy it is for confirmation bias to take place, especially considering the previous uptrend leading people to look for buys and fail to look for sells. The consolidation following the bearish engulfing candlestick could be seen as a week bearish movement preparing to reverse and continue north.

But that idea would have been wrong. Things to note are the strong 107.76 level that was touched, and the bearish wicks in the following consolidation. As we can see, price reversed, formed a lower low, then retested the bottom of the purple box before continuing down.

Now that price has moved to the 107.34, only time will tell if price rallies up and past the 107.76, or pushes deeper below the .34