EURUSD overall outlook
The market has been displaying a bearish trend following the prior supply zone. However, we are currently witnessing a notable corrective move to the upside. This corrective move can be seen as a temporary pause or a retracement within the larger bearish trend.
Supply Zone and Retracement:
Supply zones are price levels where an abundance of sell orders exists, creating a potential resistance area for further upward price movement. While the market is in a bearish trend, it is crucial to identify significant supply zones as they can act as potential turning points for a corrective move. Traders often pay close attention to these levels as they provide valuable insights into the strength or weakness of the bearish trend.
As always, it is crucial to approach the market with a well-defined trading plan, risk management strategy, and a disciplined mindset. Stay informed, adapt to changing market conditions, and make informed trading decisions based on a thorough analysis of the available information.
How to Trade here
🔺 The corrective move, on the other hand, presents an opportunity for buyers to enter the market at more favorable prices, possibly leading to a temporary relief rally. But we have given here a clear short trading setup. As traders, it’s essential to keep a close eye on key levels and price action to assess the strength and duration of the corrective move. While the market might see a bounce, it’s crucial to remain cautious as the bearish trend remains dominant.
Finally, during this corrective phase, we are witnessing a temporary respite from the dominant bearish pressure. But we expect this week a nice sell-off.
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