Market next move

91
Current Analysis Breakdown:

Pair: EUR/USD on a 1-hour timeframe.

Recent Action: Sharp decline with a small bullish reversal candle.

Assumption: A potential bounce or reversal targeting the area marked as "Target."

Volume: Increased during the decline and slightly bullish at the last candle.

Technical Area: The “Target” is set above the current price, implying a bullish move is expected.



---

Disrupting the Analysis:

Let’s introduce potential bearish or contrarian scenarios to question the bullish target assumption:

1. False Reversal / Dead Cat Bounce

The small green candle after a strong red volume drop could simply be a temporary retracement or a dead cat bounce—a short-lived recovery before the price resumes falling.

2. Volume Analysis Contradiction

While volume has increased, the spike occurred mostly during red candles (bearish). This indicates strong selling pressure, not accumulation. The green candle’s volume is relatively small, suggesting weak buyer interest.

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.