EURUSD Overextended: Bearish Liquidity Hunt?
EURUSD sold heavily from Jan 20th from the 1.128 handle and then even more heavily Feb 20th creating a bottom just bellow weekly lows at 1.078.
There was liquidity that banks needed to grab at 1.1/1.12 and as we saw on Fridays a close a cheeky stab at the 1.135 zone (just below the 1.14 weekly zone marked in yellow).
This is atypical behavior for this pair specifically, and institutions need to come back and mitigate, and clear the liquidity left below. DXY has also suffered unforgivable losses and is overdue for some bearish correction now as well.
Sell limits would be advisable around market price, 1.13, 1.135 & 1.14 depending if you're scaling into the trade. Targeting 1.118, 1.11, 1.1.7 & 1.096.
There was liquidity that banks needed to grab at 1.1/1.12 and as we saw on Fridays a close a cheeky stab at the 1.135 zone (just below the 1.14 weekly zone marked in yellow).
This is atypical behavior for this pair specifically, and institutions need to come back and mitigate, and clear the liquidity left below. DXY has also suffered unforgivable losses and is overdue for some bearish correction now as well.
Sell limits would be advisable around market price, 1.13, 1.135 & 1.14 depending if you're scaling into the trade. Targeting 1.118, 1.11, 1.1.7 & 1.096.