The EUR/USD pair has just broken out of a key supply zone, signaling strong bullish momentum. Here's a breakdown of the technical setup:
🔹 Supply Zone (1.14331 – 1.14227): Price was consolidating under this zone for an extended period, forming a base. Multiple rejections in this area previously acted as resistance.
🔹 Breakout Confirmation: A bullish candle has now closed above the supply zone, indicating the potential for a shift in market structure from ranging to bullish.
🔹 Entry Zone: The entry was likely taken after price broke and retested the supply zone, turning it into a demand zone (support).
🔹 Targets & Risk-Reward:
TP: 1.15145 (next key level based on historical price action)
SL: Just below the recent demand base, around 1.14193
Risk-to-Reward Ratio: Approximately 3:1, favoring bulls
📊 Strategy Insight:
This setup aligns with the break-and-retest strategy. Patience in waiting for confirmation above resistance levels pays off, especially when combined with clear demand/supply mapping (as shown with LuxAlgo's zones).
🧠 Trader Tip:
Watch how price reacts near 1.14600–1.14800. A clean push through could signal continuation toward 1.15145, while rejection might offer a second entry opportunity on a deeper pullback.
💬 What’s your outlook for EUR/USD? Are you bullish or expecting a fakeout?
🔹 Supply Zone (1.14331 – 1.14227): Price was consolidating under this zone for an extended period, forming a base. Multiple rejections in this area previously acted as resistance.
🔹 Breakout Confirmation: A bullish candle has now closed above the supply zone, indicating the potential for a shift in market structure from ranging to bullish.
🔹 Entry Zone: The entry was likely taken after price broke and retested the supply zone, turning it into a demand zone (support).
🔹 Targets & Risk-Reward:
TP: 1.15145 (next key level based on historical price action)
SL: Just below the recent demand base, around 1.14193
Risk-to-Reward Ratio: Approximately 3:1, favoring bulls
📊 Strategy Insight:
This setup aligns with the break-and-retest strategy. Patience in waiting for confirmation above resistance levels pays off, especially when combined with clear demand/supply mapping (as shown with LuxAlgo's zones).
🧠 Trader Tip:
Watch how price reacts near 1.14600–1.14800. A clean push through could signal continuation toward 1.15145, while rejection might offer a second entry opportunity on a deeper pullback.
💬 What’s your outlook for EUR/USD? Are you bullish or expecting a fakeout?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.