The EURUSD pair closed the previous week with a bullish weekly candle, positioned within the bounds of a significant two-week-old bearish candle. This pattern suggests a potential pause or consolidation phase after a strong downtrend, but traders should remain cautious as the overall trend still bears the mark of the larger bearish candle.
Recent COT (Commitment of Traders) data provides additional insights into market sentiment. Retail traders have increased their long positions, indicating a more bullish outlook among individual traders. Conversely, both commercial and non-commercial traders are shifting towards bearish positions, signaling a potential underlying strength in the US dollar and a cautious stance among large market participants.
Given these dynamics, there is a high probability that the EURUSD may retest the recent daily supply zone, which has already been touched during the week. If the price moves down from this level, it could signal a continuation of the overall bearish trend, especially considering the COT data's favor towards dollar strength.
What are your thoughts on this setup? Do you see a potential reversal, or will the bullish weekly candle lead to further upside?
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Recent COT (Commitment of Traders) data provides additional insights into market sentiment. Retail traders have increased their long positions, indicating a more bullish outlook among individual traders. Conversely, both commercial and non-commercial traders are shifting towards bearish positions, signaling a potential underlying strength in the US dollar and a cautious stance among large market participants.
Given these dynamics, there is a high probability that the EURUSD may retest the recent daily supply zone, which has already been touched during the week. If the price moves down from this level, it could signal a continuation of the overall bearish trend, especially considering the COT data's favor towards dollar strength.
What are your thoughts on this setup? Do you see a potential reversal, or will the bullish weekly candle lead to further upside?
✅ Please share your thoughts about 6E1! in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
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🔥 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.