Sellers be careful. EUR/USD Institutional Bulls are back!!
On Wednesday, some traders got burnt when EUR/USD went up so fast and so high, when the US CPI News came out during the New York Session. Trading the news without proper analysis is like gambling, but that is not the focus of this post.
The main problem is that a lot of Traders forget about the Higher Timeframe Charts when trading, and they focus on only the lower timeframes. The Higher Timeframe Charts determine the direction of the markets.
Let us look at EURUSD on the Weekly Chart.
In 2020. the trend was bullish in favour of buyers. there was buying throughout that year and price broke the 1.5 Resistance and kept going up. So in 2020, we had an Uptrend in place.
In 2021, Price hit the 1.23 Area and that Area became the High for the 2021. Price continue to go down and retrace down. Throughout the whole of 2021, EUR/USD was in a Downtrend until the end of the year.
Now we can see the movement of the Institutional Buyers on the Chart. They are the Big Players who have the volume to move markets and we can see that they left an Imbalance on the Weekly chart.
This tells us that we have huge buy orders in that area. That Imbalance is the Rally-Base-Rally (RBR) at the 1.1200 Weekly Order Block. The Weekly Order Block is the Rectangle in the Chart.
Measure the Fibonacci of the Uptrend of 2020, from the lowest Point 1.0650 March 2020 to the Highest Point at 1.2350 January 2021. You will notice that the 61.8% Fibonacci Support is also in the Order Block.
This Confluence give us more confirmation that this zone is the place for the Uptrend to resume. and from what you see on the Chart, the Uptrend has resumed right at the beginning of 2023.
Unless something happens, I have a Bullish Bias, Trade what you see, not what you hear. The Chart tells you everything you need to know. Price has come out of the Weekly Order Block, So I will wait for new weekly candles to come down to test the surface of the Weekly Demand Order Block.
Then I will look to buy between 1.1350 - 1.1380 for some swing trading. and also continue to buy the dips as the Uptrend continues.
Cheers and Happy Trading!!
The main problem is that a lot of Traders forget about the Higher Timeframe Charts when trading, and they focus on only the lower timeframes. The Higher Timeframe Charts determine the direction of the markets.
Let us look at EURUSD on the Weekly Chart.
In 2020. the trend was bullish in favour of buyers. there was buying throughout that year and price broke the 1.5 Resistance and kept going up. So in 2020, we had an Uptrend in place.
In 2021, Price hit the 1.23 Area and that Area became the High for the 2021. Price continue to go down and retrace down. Throughout the whole of 2021, EUR/USD was in a Downtrend until the end of the year.
Now we can see the movement of the Institutional Buyers on the Chart. They are the Big Players who have the volume to move markets and we can see that they left an Imbalance on the Weekly chart.
This tells us that we have huge buy orders in that area. That Imbalance is the Rally-Base-Rally (RBR) at the 1.1200 Weekly Order Block. The Weekly Order Block is the Rectangle in the Chart.
Measure the Fibonacci of the Uptrend of 2020, from the lowest Point 1.0650 March 2020 to the Highest Point at 1.2350 January 2021. You will notice that the 61.8% Fibonacci Support is also in the Order Block.
This Confluence give us more confirmation that this zone is the place for the Uptrend to resume. and from what you see on the Chart, the Uptrend has resumed right at the beginning of 2023.
Unless something happens, I have a Bullish Bias, Trade what you see, not what you hear. The Chart tells you everything you need to know. Price has come out of the Weekly Order Block, So I will wait for new weekly candles to come down to test the surface of the Weekly Demand Order Block.
Then I will look to buy between 1.1350 - 1.1380 for some swing trading. and also continue to buy the dips as the Uptrend continues.
Cheers and Happy Trading!!