We all saw the EU moving strongly bullish after the US data showed weakness in the economy. But will this USD weakness continue? Is this a sign that the market is reversing or is this a minor retracement?
Well this is very much a retracement. How? With all this bullish candles showing the strength in the foreign currencies. Let me break it down a bit.
Now we see the market moving fast few weeks back down, with the dollar strength, taking out major lows and the DXY taking major highs, and we all know after price takes out liquidity, price retraces or reverse. This case the market retraces back to a weekly bearish OB, and once that is clicked on in few days, my expectation is Tuesday, the market will take a sharp turn down. How far down? Down to the sellside liquidity resting below those lows. And then back to fill the imbalance and back to the sellside liquidity further down.
Remember price moves from Liquidity to Imbalance and back to Liquidity
Well this is very much a retracement. How? With all this bullish candles showing the strength in the foreign currencies. Let me break it down a bit.
Now we see the market moving fast few weeks back down, with the dollar strength, taking out major lows and the DXY taking major highs, and we all know after price takes out liquidity, price retraces or reverse. This case the market retraces back to a weekly bearish OB, and once that is clicked on in few days, my expectation is Tuesday, the market will take a sharp turn down. How far down? Down to the sellside liquidity resting below those lows. And then back to fill the imbalance and back to the sellside liquidity further down.
Remember price moves from Liquidity to Imbalance and back to Liquidity