Price action for EUR/USD is very similar to GBP/USD (GU). If GU continues rising to mitigate that deeper supply, it aligns with the 1.11000 level in the 20-hour supply zone for EUR/USD. I expect the bullish pressure to gradually die down and for price to eventually mitigate this supply. Therefore, I don’t expect a major move on Monday, but this scenario could play out over the week.
If price sells off from the 20-hour supply zone, I will then wait for scenario (B), which involves the mitigation of the daily demand that caused a break of structure to the upside. There's also a refined version of this demand on the 19-hour time frame, which looks promising for buys to continue the bullish trend.
Confluences for EUR/USD Sells:
- Bullish pressure is getting exhausted, suggesting a potential retracement.
- There is a lot of liquidity below, along with imbalances that need to be mitigated.
- This outlook aligns with expectations for the DXY to rise slightly.
- This is a counter-trend short-term trade with the goal of eventually rejoining the pro-trend.
P.S. If price reacts to the current imbalance and goes back down, I will look to enter buys to take price back up to the supply zone. However, buys are favorable due to the current bullish trend.
If price sells off from the 20-hour supply zone, I will then wait for scenario (B), which involves the mitigation of the daily demand that caused a break of structure to the upside. There's also a refined version of this demand on the 19-hour time frame, which looks promising for buys to continue the bullish trend.
Confluences for EUR/USD Sells:
- Bullish pressure is getting exhausted, suggesting a potential retracement.
- There is a lot of liquidity below, along with imbalances that need to be mitigated.
- This outlook aligns with expectations for the DXY to rise slightly.
- This is a counter-trend short-term trade with the goal of eventually rejoining the pro-trend.
P.S. If price reacts to the current imbalance and goes back down, I will look to enter buys to take price back up to the supply zone. However, buys are favorable due to the current bullish trend.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.