This week's forecast for the EURUSD aligns with the breakdown observed in GBPUSD, indicating a positive correlation between these pairs. In the case of EURUSD, I anticipate further downward movement to reach a 19-hour demand zone. Following this, I expect a bullish reaction, propelling the price upward towards a more favorable supply zone for a potential sell-off.
Additionally, there is significant liquidity positioned above the current price, providing an additional rationale for a retracement. Given the recent bearish trend, I foresee an impending pullback, which I anticipate will occur during this week.
Confluences for EURUSD Buys are as follows:
- Price entering a 19hr demand zone that caused a broke of structure to the upside on HTF.
- There lots of liquidity lying above in the form of Asian highs and trendline liquidity.
- Price has been moving bullish the last couple of weeks and I consider this a pro-trend trade.
- The DXY (Dollar) is also temporarily bearish which means I'm expecting this pair to keep going up.
- The imbalances that were left previously have now been filled so price could be ready to retrace.
P.S. Although I am currently seeking buying opportunities in the demand area just below the current price, it wouldn't be surprising if the price decides to drop further to reach a more affordable zone. This adjustment could potentially result in an improved bullish position. Additionally, upon entering a supply zone, I anticipate the price to sustain a bearish trend, given the prevailing bearish sentiment in the overall market for the EURUSD.
Additionally, there is significant liquidity positioned above the current price, providing an additional rationale for a retracement. Given the recent bearish trend, I foresee an impending pullback, which I anticipate will occur during this week.
Confluences for EURUSD Buys are as follows:
- Price entering a 19hr demand zone that caused a broke of structure to the upside on HTF.
- There lots of liquidity lying above in the form of Asian highs and trendline liquidity.
- Price has been moving bullish the last couple of weeks and I consider this a pro-trend trade.
- The DXY (Dollar) is also temporarily bearish which means I'm expecting this pair to keep going up.
- The imbalances that were left previously have now been filled so price could be ready to retrace.
P.S. Although I am currently seeking buying opportunities in the demand area just below the current price, it wouldn't be surprising if the price decides to drop further to reach a more affordable zone. This adjustment could potentially result in an improved bullish position. Additionally, upon entering a supply zone, I anticipate the price to sustain a bearish trend, given the prevailing bearish sentiment in the overall market for the EURUSD.