EURUSD has reached its target position, the weekly demand zone. Currently, the 1-hour downtrend continues. Even if it rebounds, a correction trend line of the 4-hour downward wave can be drawn because the 4-hour supply zone is on standby. If so, it could come down once more, where the decline stops further and an impulse occurs that breaks the 4-hour correction trend line of the bearish wave, which will be a buy position when the retracement comes. However, if the impulse start line is broken, this strategy becomes invalid. If that happens, you'll have to wait for a 4 hour bullish pattern.
The break of the 4-hour correction trend line of the down wave means that it is rebounding for daily correction. Then there will be a pattern that rises to the daily supply zone.
There are two cases in the next step.
The first settles above the blue support line below (formerly daily correction trend line) and when an upward movement comes out, the probability of a second upward wave will increase as the low will become the weekly correction trend line of the new upward wave.
Second, if it does not settle on the blue support line and stays below it, or if it becomes a correction pattern, the daily correction ends and there is a high probability that the daily downward wave will continue, so the probability of renewing the bottom is high.
It is recommended that you refer to the previous DXY analysis article and look at it together.
The break of the 4-hour correction trend line of the down wave means that it is rebounding for daily correction. Then there will be a pattern that rises to the daily supply zone.
There are two cases in the next step.
The first settles above the blue support line below (formerly daily correction trend line) and when an upward movement comes out, the probability of a second upward wave will increase as the low will become the weekly correction trend line of the new upward wave.
Second, if it does not settle on the blue support line and stays below it, or if it becomes a correction pattern, the daily correction ends and there is a high probability that the daily downward wave will continue, so the probability of renewing the bottom is high.
It is recommended that you refer to the previous DXY analysis article and look at it together.
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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.