EUR/USD – Reversal Might Still Be Possible
Today we have seen EUR/USD start to climb back towards the high of the bearish pin bar which broke the supply zone.
The market didn’t end up falling after spiking through the supply zone, instead it consolidated until the markets close on Friday night. When the London session began around 8:00 the price fell and it seemed like the drop was going to break the swing low that was made which the price started rising.
This didn’t happen and now the price is moving back up to the area where the drop originated from. If the drop has been caused by the banks placing sell trades we must monitor the high marked in the image as a break through here with multiple bullish candles would confirm the reason why the market fell was because the banks were taking profits off long trades as opposed to them placing sell trades to make the market reverse.
USD/JPY – Price Falling Back Into Swing Low
After a small move higher that took place last night we are now seeing USD/JPY fall back into the swing low which needs to be broken in order for us to start looking for short trades.
The supply zone is a still a valid place to be looking for short trades if the market returns but for now the focus is mainly on whether the swing low gets broken by another move lower. If it does then there is a high chance we’ll see the market break past the swing low of this entire retracement which would confirm to us the market is still in a downtrned
AUD/USD – Moving Higher From Demand Zone
AUD/USD has begun to move higher after falling into the demand zone which formed last week.
The price gaped into the demand zone when the market opened last night. From here the price started advancing higher and is now approaching the source of the down-move which took place when Britain decide to leave the EU. What we need to look for now is whether the market is able to close above the high made when the price dropped, a close above here would tell us the drop was not caused by the banks placing sell trades which means the up-trend is still intact.