TheTwoTraders

EURUSD Price action and technical analysis

OANDA:EURUSD   Euro / U.S. Dollar
Patiently waiting for this set up.
The Daily chart is now showing a strong bullish trend .

Here you can see on the 30m chart a strong resistance level has been breached, how do we know this was a strong resistance level? Take a look how price reacted to the upper purple zone, we can see price head in to that area before being rejected sharply numerous times. We now know to break this level we are going to need a big push from the buyers, which we have now seen. I will share a chart below showing the volume profile of buyers pushing the price through the upper purple zone.

On the other hand we had sellers trying to sell the market back down to the lower purple zone (we know where their stops are right? Yep you’ve got it, all their stops are placed above the upper purple zone) and on this occasion the buyers took control.
So why does price push higher so fast? Well you know those stops I mentioned a moment ago, as they get hit they're now essentially buying the market, adding to the buying pressure. So what happens now? well, the big buyers entered lower down, they stacked up their positions and now the market has pushed higher, the market becomes too expensive for them to buy. So how do they get a better price? they wait for the market to drop back down, they let the sellers back into the market, as soon as price looks attractive they can enter again :)

This is price action trading, if we see a sharp move back to the previous resistance area then it's not a trade to take, you want to see slower movements back with a slight consolidation around the purple zone before buying in.

I hope this helps, feel free to drop me any questions you have.
Comment: The move happened, I'm currently still in the trade.

https://s3.tradingview.com/snapshots/f/f...

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