The EUR/USD futures (6E1!) are currently trading at 1.1858, already inside a key monthly supply zone. With price action approaching higher resistance levels, traders should prepare for potential reversals—especially near the 1.20395 – 1.22710 range, where a major bearish reaction could unfold.
Key Technical Levels to Watch
Current Price: 1.1858, testing the lower bounds of a monthly supply zone.
Weekly Supply Areas: Highlighted on the chart, signaling potential selling pressure ahead.
Primary Target Zone for Shorts: 1.21240 – 1.22710 (within the broader 1.20395 – 1.22710 range).
Breakout Scenario: A sustained move above 1.22710 could invalidate the bearish structure, targeting 1.2400+.
COT Report Reveals Market Sentiment Shifts
The latest Commitment of Traders (COT) report shows:
Commercials (Smart Money): Accumulating bearish positions, suggesting institutional hedging at these levels.
Non-Commercials (Large Speculators): Still bullish but stagnant—no major additions or reductions in exposure.
Retail Traders: Remain bullish, often a contrarian signal when Commercials are increasing shorts.
This setup suggests that while momentum is still upward, the lack of new buying from Non-Commercials and Commercials increasing shorts could lead to a reversal.
Key Technical Levels to Watch
Current Price: 1.1858, testing the lower bounds of a monthly supply zone.
Weekly Supply Areas: Highlighted on the chart, signaling potential selling pressure ahead.
Primary Target Zone for Shorts: 1.21240 – 1.22710 (within the broader 1.20395 – 1.22710 range).
Breakout Scenario: A sustained move above 1.22710 could invalidate the bearish structure, targeting 1.2400+.
COT Report Reveals Market Sentiment Shifts
The latest Commitment of Traders (COT) report shows:
Commercials (Smart Money): Accumulating bearish positions, suggesting institutional hedging at these levels.
Non-Commercials (Large Speculators): Still bullish but stagnant—no major additions or reductions in exposure.
Retail Traders: Remain bullish, often a contrarian signal when Commercials are increasing shorts.
This setup suggests that while momentum is still upward, the lack of new buying from Non-Commercials and Commercials increasing shorts could lead to a reversal.
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Disclaimer
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🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
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🟪 Instagram: instagram.com/forexn1_com/
🔥 USA ZERO SPREAD BROKER: forexn1.com/usa/
🔥 UP to 4000$ BONUS: forexn1.com/broker/
🟪 Instagram: instagram.com/forexn1_com/
Related publications
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.