EURUSD Longs from 1.06400 to 1.07400 (possibly higher)
This week's analysis for the EURUSD is similar to GU however it has some slight differences (at the end of the day they are different pairs with different characteristics.) In terms of current price I see the market consolidating just before the CPI event before making its decision.
So I would wait for price to either sweep liquidity below and tap in the (18hr) demand or, sweep the liquidity above and mitigate the (8hr) supply. But as we can use the dollar as a confluence I would be expecting it to rise a little then drop, so for the EURUSD I'm expecting it to tap in the demand first to buy back up to the supply zone above.
Confluences for EURUSD Longs are as follows:
- Price has formed higher highs and higher lows which is the clean structure of an uptrend.
- Price has left a clean unmitigated demand zone on the 18hr that I can buy from.
- Price has slowed down momentum and is ranging which is building liquidity for my potential buys this week.
- The dollar index also matches up with the bias as the DXY is expected to rise a little more, to then continue another bearish move to the downside.
- Demand zone has also broken structure to the upside and price has filled in the imbalances from the previous weeks.
P.S. I am more leading towards longs similar to GU so won't be surprised if it doesn't go as low as the demand zone marked, but keeps rising in order to mitigate the supply and sweep that liquidity below it. So for me, I would ideally wait and see as I don't see an imminent trading opportunity for Monday hence, why I would wait after CPI Tuesday to give me a better understanding of what direction this market wants to go in.
So I would wait for price to either sweep liquidity below and tap in the (18hr) demand or, sweep the liquidity above and mitigate the (8hr) supply. But as we can use the dollar as a confluence I would be expecting it to rise a little then drop, so for the EURUSD I'm expecting it to tap in the demand first to buy back up to the supply zone above.
Confluences for EURUSD Longs are as follows:
- Price has formed higher highs and higher lows which is the clean structure of an uptrend.
- Price has left a clean unmitigated demand zone on the 18hr that I can buy from.
- Price has slowed down momentum and is ranging which is building liquidity for my potential buys this week.
- The dollar index also matches up with the bias as the DXY is expected to rise a little more, to then continue another bearish move to the downside.
- Demand zone has also broken structure to the upside and price has filled in the imbalances from the previous weeks.
P.S. I am more leading towards longs similar to GU so won't be surprised if it doesn't go as low as the demand zone marked, but keeps rising in order to mitigate the supply and sweep that liquidity below it. So for me, I would ideally wait and see as I don't see an imminent trading opportunity for Monday hence, why I would wait after CPI Tuesday to give me a better understanding of what direction this market wants to go in.