Euro / U.S. DollarShort
EURUSD Return To Supply Zone
Updated
EURUSD has made a sharp Rally from 1.08 back towards the Supply Zone.
Sellers are confirmed as the VSA shows the first High Volume (Yellow) Candle, of the Rally, having a spread of 76 pips. Notice the next High Volume Candle is larger, but the resultant candle spread is only 22 pips. For a greater effort (volume), there is a lesser result ( spread ).
This VSA spread divergence and a candle printing with a significant upper shadow, highlights
the proximity of the Supply Zone.
This recent and most pertinent Supply Zone, is unmitigated and as such, I am expecting a
significant reaction.
It is not hard to foresee the Smart Money setting a Bull Trap around 1.0950. A perfect base
at 1.0870-1.09 offers a liquidity grab as well, with price action likely to move around both support and resistance areas.
The RSI is near the OB zone, but price action will push it higher, before the correction to the
OS levels and the Fresh Demand Zone.
For the next 2 weeks the bias is Bearish.
Sellers are confirmed as the VSA shows the first High Volume (Yellow) Candle, of the Rally, having a spread of 76 pips. Notice the next High Volume Candle is larger, but the resultant candle spread is only 22 pips. For a greater effort (volume), there is a lesser result ( spread ).
This VSA spread divergence and a candle printing with a significant upper shadow, highlights
the proximity of the Supply Zone.
This recent and most pertinent Supply Zone, is unmitigated and as such, I am expecting a
significant reaction.
It is not hard to foresee the Smart Money setting a Bull Trap around 1.0950. A perfect base
at 1.0870-1.09 offers a liquidity grab as well, with price action likely to move around both support and resistance areas.
The RSI is near the OB zone, but price action will push it higher, before the correction to the
OS levels and the Fresh Demand Zone.
For the next 2 weeks the bias is Bearish.
Note
Bear Trap wax executed, hopefully traders kept out of the false break....Note
Lot at the Volume at the trap.... High Volume to take price up , encourage the breakout traders and then high volume on the sell side. The Smart Money always sells high and buys low.... They will take this back to the Demand Zone to make the max profit....
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.