EUR / USD Main Outlook :
Following the FOMC release this week, the EUR/USD pair fell to 1.0855, marking its lowest point since Friday. As the Asian session approaches, traders are getting ready to scrutinize the forthcoming US labor market data, and the pair has a bearish tone. In last week’s forecast, we predicted that the bearish movement would continue until the price reached the next two targets (as we showed in the chart). The market followed exactly the same pattern you can see that video link in the top right corner. Price hit those targets. However, the price reacted to the demand zone but we found that it failed to make any bullish structure and the price moved downward, It broke the recent low.
EURUSD Daily Time Frame
Based on this analysis, it appears that the market is currently experiencing a significant downward trend. The fact that it has broken the recent swing point on the left and is approaching the extreme demand zone suggests that there may be further downside potential. It will be important to monitor the market closely to see if it is able to find support at this level, or if it continues to move lower. Additionally, it may be beneficial to consider other time frames and technical indicators to gain a more comprehensive understanding of the market’s overall direction and potential future movements.
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EURUSD Micro Structure in the 1-hour chart
the 1h chart to see the microstructure of the pair. Here you can see the price breaks the last low and moving down. According to the microstructure, this is the recent swing high and this is the swing low. And This is the supply zone. this high can act as a liquidity zone. We are expecting the price will reach to this supply zone to test. After that, it may resume bearish till the next target. However according to the daily chart, the price is approaching the extreme demand zone, so to take a short position we have to wait for more confirmation. If the price breaks the swing high then bias can be shifted from bearish to bullish.
See the Video To find details analysis and signals
Our Trading Plan for ERUSUSD
Based on the analysis of the daily chart, it seems that the market is currently in a strong bearish trend and approaching the extreme demand zone. As per our trading plan, we will be looking for an opportunity to go short from the supply zone, provided that we receive confirmation of a potential reversal in the market’s direction.
It will be important to monitor the price action closely and wait for a clear signal before entering the trade. If the price breaks the swing high, this would invalidate our setup and we would need to reassess the market and potentially adjust our trading plan.
Overall, it is important to remain patient and disciplined when trading and to always have a well-defined plan in place to manage risk and maximize potential profits.
