This week, my focus for EUR/USD is on the supply zone near 1.05800. I anticipate a reaction from this level, making it a key area for potential sells at the start of the week. Following this initial move, I expect a bullish rally to develop midweek.
If the price drops to 1.05200, aligning with my 11-hour demand zone, I’ll shift my focus to potential buys. After receiving valid lower-timeframe confirmations, I plan to target the nearest liquidity pool to the upside as the price resumes its bullish trend.
Confluences for EUR/USD Sells:
Shift in Market Character: Price has shown signs of a downside reversal, suggesting a potential sell-off.
Unmitigated Supply Zone: A clean 2-hour supply zone remains untapped.
Liquidity Below: There’s significant liquidity to the downside that price may target.
Trend Recalibration: Despite the overall bullish trend, a pullback is necessary for continuation.
Note: If the supply zone at 1.05800 fails to hold, it will further confirm bullish momentum. In this case, I’ll wait for a nearby demand zone to form, providing an opportunity to capitalize on the move to the upside. Patience will be key in this scenario.
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