– Last week, the market closed bearish with a significant pullback from a buy side.
– On Friday, price action showed a push back from that demand zone,
– the 4-hour time frame, which clearly illustrates the double wick rejection at that zone.
This raises the question of whether EUR/USD will continue its bullish run despite the structural break. A further push into the sell side at 1.07351 is anticipated.
If price breaks through that zone, we expect to see a further buy into 1.07826 and subsequently 1.08148.
Conversely, a drop from that sell side zone will result in price retesting the buy side at 1.06939. A strong bearish candle into that zone will determine if price will drop further into the buy side zone at 1.06484.
This week is filled with notable fundamental news that is expected to create market volatility. Traders are advised to exercise caution and look out for optimal trading opportunities to capitalize on.
Have a profitable week.
DISCLAIMER This post is intended for educational purposes only and should not be considered financial advice. The author is not liable for any losses or profits resulting from actions taken based on the provided information.