EUR/USD Longs from 1.09200 back up
This week, my analysis has diverged from GU due to the bullish reaction in EU triggered by the NFP, causing a CHOCH (Change of Character) to the upside. The higher time frame structure has broken, creating clean demand zones. I now expect price to retrace to one of these demand zones before continuing its upward movement.
If price continues to rise and fully fills the imbalance, I anticipate a bearish reaction from the 22-hour supply zone, leading to a slowdown and distribution.
Confluences for EU Buys:
- NFP Impact: NFP caused a CHOCH to the upside, indicating a shift from bearish to bullish.
- Demand Zones: Clean demand zones have been left behind, signaling areas where price may pull back.
- Daily Imbalance: Price is currently in a daily imbalance, which may trigger a pullback.
- Bullish Trend: The current trend is bullish, supporting the continuation of upward movement.
P.S. If price reacts to the imbalance with a bearish pullback, this could provide buying opportunities from the 5-hour demand zone or the 17-hour extreme demand.
If price continues to rise and fully fills the imbalance, I anticipate a bearish reaction from the 22-hour supply zone, leading to a slowdown and distribution.
Confluences for EU Buys:
- NFP Impact: NFP caused a CHOCH to the upside, indicating a shift from bearish to bullish.
- Demand Zones: Clean demand zones have been left behind, signaling areas where price may pull back.
- Daily Imbalance: Price is currently in a daily imbalance, which may trigger a pullback.
- Bullish Trend: The current trend is bullish, supporting the continuation of upward movement.
P.S. If price reacts to the imbalance with a bearish pullback, this could provide buying opportunities from the 5-hour demand zone or the 17-hour extreme demand.
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