EUR/USD Chart Analysis: RDB Setup Signals Selling Opportunity

27 Des 2023

On the EUR/USD Daily chart, there's a notable fresh supply zone that emerged around July 27, 2023, positioned on the left side. It's highly probable that the price will gravitate towards that level. Zooming in on the right side of the chart, specifically on the H1 timeframe, reveals a closer look at this supply level. The price action exhibits a strong upward movement leading to that level, followed by a series of narrow-ranging candles, constituting the base, and subsequently, a significant drop from that point. This particular pattern is referred to as RDB, which stands for Rally Base Drop. It's a robust setup signaling a potential opportunity for a selling position once the price retests that level.