✨ Today’s Focus: EUR/USD – A Market Mover We’ll dive into the latest price movements and analyze key market levels to uncover potential trends.
🚨 Previous Analysis Recap: In our last analysis, we anticipated a further drop after a reaction into the 4H imbalance. While the predicted decline occurred, the extent of the move exceeded our expectations.
📊 Current Market Overview: The price has recently swept key liquidity levels, including the Previous Week Low (PWL) and Sell-Side Liquidity (SSL). Currently, the market is consolidating, a sign of liquidity building. At this stage, we’re watching for a deeper retracement or possibly a full reversal.
🔴 What to Expect: Short-Term vs Long-Term Scenarios Here, we explore potential outcomes for both short-term and long-term, outlining both bullish and bearish possibilities for day trading.
🗣 Short-Term Outlook: In the short term, a retracement toward internal liquidity levels, such as Low Resistance Buy-Side Liquidity (LBSL), and lower time frame imbalances (1H and 15m) is expected.
🗣 Long-Term Outlook: The long-term scenario points to a possible expansion higher, targeting the Previous Week High (PWH), which aligns with a Bearish Fair Value Gap (FVG) on the weekly chart. However, beyond this point, further clarity is needed before determining if the price can continue higher.
🕓 Key Levels to Watch: These critical levels could influence price action:
- PMH: Previous Month High - PML: Previous Month Low - PWH: Previous Week High - PWL: Previous Week Low - BSL: Buy-Side Liquidity - SSL: Sell-Side Liquidity - Daily FVG: Fair Value Gap (Imbalance zone)
These levels represent potential areas for liquidity grabs or market rebalancing. FVGs are zones where price may retrace before continuing its trend.
📈 Bullish Scenario: A bullish setup could be identified on lower time frames (like the 15m), where a Market Structure Shift (MSS) with confluence would signal an entry. The target would be the Buy-Side Liquidity, as highlighted in the short-term outlook.
📉 Bearish Scenario: For a bearish outlook, we require further confirmation on lower time frames. The focus would be on a continuation towards Sell-Side Liquidity, although identifying clear targets may be more challenging at this point.
📝 Conclusion: Stay flexible as market conditions shift. Monitoring these critical levels and setups will enhance your strategy and help you identify high-probability trades.
🔮 Looking Ahead: Stay tuned as we continue to track NASDAQ, DXY, EUR/USD, and other major markets. More timely insights will follow as trends develop.
⚠️ Disclaimer: This analysis is for educational purposes only and not financial advice. Always do your own research and consult a licensed financial advisor before making any investment decisions.
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