EUR/USD – Daily Demand Zone Broken
The daily demand zone which the market fell into yesterday has been broken today but we could still see a move up occur as the price action forming suggests the bank traders are taking profits off sell trades.
You can see how the market has kind of being in a consolidation today with bullish moves followed by bearish moves that are similar in size. If we do see the market start to rise up again the supply zone seen in the image is the point where you want to be watching for entries short as it’s the last point where the banks got a large portion of their sell trades placed.
USD/JPY – Sell Zone Broken By Move Higher
The sell zone which the market was making its way through yesterday has now been broken and we have a new demand zone we can use to look for entries long
Looking at the image you can see a retracement began just before midnight last night and continued until 3 am at which point a large bullish engulfing candle entered the market and caused the price to begin moving higher. This engulf also created a new demand zone which we can use to look for potential entries long if the price starts to decline again. I think this is likely because we can already see there are some signs of profit taking enter the market in the form of bearish candles so a fall back down to this zone may be possible by the end of the week.
AUD/USD – Profit Taking Entering The Market
AUD/USD retraced slightly last night and is now having trouble breaking lower with multiple bullish and bearish candles currently forming near today’s lows.
There was a large drop a couple of hours ago but the market was able to recover and trade back up to the pre-drop highs. The sell zone identified in yesterday’s post is still the main place we want to be watching for entries short, if the market keeps falling to break to new lows it could be that we see a move back up into this sell zone which may give us an opportunity to get a short trade placed.
Leave a Reply