I have adjusted a bit of my view on EURUSD, the estimation of how deep is the liquidity under the last week's low. Yesterday price tapped into it and you could see the aftermath : the doji-like candle just at the time of London close.
Then I looked at the pair's weekly and monthly range, the price hasn't reached it yet (the Monthly Low Projection). Considering the daily ranges between Tuesday and yesterday, in spite of the market making continued lower highs lower lows (you can say this week's move can be a poster boy of "selling high" in a downtrend), the daily ranges however had been very small.
I am strong believer that each day the price failed to hit the average daily range, it will be paid in the other day. In other words, the market "owes" us that range deficit and that deficit will accumulate. We have had three days of average range deficit.
If the institutions decided to "pay" the market what they "owed", you could see a price expansion today even above the daily range and MAYBE, just maybe institutions could tap in deeper to the liquidity pools down below (hitting the weekly and monthly projection, not necessarily exactly to the pip of course)
I am a fan to long EURUSD but I would have more conviction if they traded even lower today, tapping all those stacks of sell orders.
Then I looked at the pair's weekly and monthly range, the price hasn't reached it yet (the Monthly Low Projection). Considering the daily ranges between Tuesday and yesterday, in spite of the market making continued lower highs lower lows (you can say this week's move can be a poster boy of "selling high" in a downtrend), the daily ranges however had been very small.
I am strong believer that each day the price failed to hit the average daily range, it will be paid in the other day. In other words, the market "owes" us that range deficit and that deficit will accumulate. We have had three days of average range deficit.
If the institutions decided to "pay" the market what they "owed", you could see a price expansion today even above the daily range and MAYBE, just maybe institutions could tap in deeper to the liquidity pools down below (hitting the weekly and monthly projection, not necessarily exactly to the pip of course)
I am a fan to long EURUSD but I would have more conviction if they traded even lower today, tapping all those stacks of sell orders.