EUR/USD Imminent Shorts towards 1.06800My analysis on EUR/USD mirrors that of GBP/USD, as it has entered a significant supply zone where I anticipate a bearish reaction. Given the abundance of liquidity and the temporary bullishness of the dollar, this scenario appears plausible. Therefore, I'll be monitoring for a redistribution pattern on Monday before considering initiating sell positions.
I acknowledge the presence of considerable imbalances above, which could prompt price to rise and potentially reach the supply zone in scenario (C). However, my overall expectation for EUR/USD is a downward movement towards 1.06800.
Confluences for EU Shorts are as follows:
- Price left a clean 3hr supply zone which price is currently re distributing inside.
- Price has been moving bearish regarding the recent break of structure to the downside.
- DXY is also been moving bullish so it backs the EU downtrend.
- Lots of liquidity to the downside like trendline Asian lows and swing lows.
- The overall trend of this market like the monthly still shows its a bearish trend.
P.S. I'm currently leaning towards a pro-trend stance with this idea, primarily because of the recent downward breaks in structure. Additionally, there are few demand zones in proximity to the current price, suggesting that price may decline to sweep that liquidity.
HAPPY TRADING AND REMEMBER ITS USD BANK HOLIDAY MONDAY!
