And so Dragged-iie did talk down the Euro as CNBC points out before the ECB statement. IN fact it was merely by market forces it self. When it reach the 1.3726 ish , it was close to the weekly supply. Hence the price sold by big institution. UNsuspecting buyers will definitely get stopped out. I recall this on my recent blog on the weekly chart.
Okay , the damage was then ochestrated by draghi as a catalyst. I’m sure a lot of traders are confuse out there. I was looking at my chart after I waited a reaction to the supply. And it did. The price went falling into the daily chart fresh Demand.
I remember a fresh demand from the initial rally at 1.3370. Well, it did touch it merely by the spread. and the price went bouncing off this price level.
Now yesterday and today, the price was within those confine level. It’s absorbing as much sellers of yesterday as it can and hence the equilibrium state ( consolidation ). The equal forces of buyers and sellers are matched. SO we need a big trader to off set the balance so it become imbalance.
That’s just the first part. The 2nd part is, we are at stage 3 trend ( near a weekly supply ) so any small demand within those nearby level, could or may not work much as the probability of the trade decreases.
SO, what the current situation is , it is best we trade what we see. at the moment. I’m looking at a demand at 1.3370 that has been touched but the reaction from that demand was not as strong as I expected even though along the way up, there is no possibility of a speed bump. But I have to keep it in mind since the actual supply precisely at 1.3730. It may go there.
Or to the nearest supply on the smaller time frame like the 1 hour.
So where we are to trade this pair ?
Go long when price is within those 1.3400 – 1.3300 zone.
GO short if it rally towards 1.3500 and above.
If It was me. I will Long the pair anything below 1.3370 with a target 1.3500.
But will that happen today ?
I doubt it. I will see it again if there is any opportunities that will present it self to trade. Today, probably no trade unless someone or something that will move the price of the Euro…