Good morning, team. Welcome to the first trading session of the week. We’re looking at Euro/USD this morning, and we’re expecting price action to deliver further bullish movement. Last week, we called for bullish movement from the area where price was sitting, and we saw a beautiful expansion through the highs.
Now, of course, last week ended with a bank holiday on Friday in the UK, and we also have a bank holiday today. This means price may be looking to restructure and pull back into more desirable pricing. As a result, we could see a slowdown in bullish momentum and a possible pullback.
As always, we don’t expect pullbacks as a certainty, but given the current information, anticipating one is a reasonable idea—especially since our entries can only occur at lower levels. We remain bullish and expect price action to continue upward, so we shouldn’t focus on selling this market. Instead, we should anticipate entering from more desirable zones.
Note that the COT data is long on this pair. There’s also a large amount of liquidity resting at the base of this run. As always, if short-term lows are formed between the most recent high and the last significant move, we could look for a short-term move into a potential new high—if bullish movement continues. This means watching the hourly timeframe for potential entry zones.
Keep an eye on the high-volume lows at the base of this move and expect, as mentioned above, long setups to develop later this week.