EUR/USD Weekly Outlook – Bearish Scenario in Play
This week’s outlook for EUR/USD is leaning towards a bearish continuation.
Price recently respected the 3H demand zone and gave a clean bullish reaction following the expected Asia low sweep. I didn’t manage to catch an entry as it happened quite late in the day. However, that same demand zone now looks to be weakening, potentially leading to another break of structure to the downside.
Alternatively, we could see price push higher from this demand zone and mitigate the 8H supply zone I’ve marked out — which is the origin of the last break of structure. It’s also a strong POI given its location away from liquidity and at an extreme structural point.
Confluences for EUR/USD Sells:
- Multiple breaks of structure to the downside (pro-trend setup)
- Failing 3H demand zone already mitigated
- Liquidity resting below current price
- Strong 8H supply zone sitting above the Asia highs
- DXY is showing short-term bullish momentum, aligning with EUR/USD bearish movement
P.S. If price doesn’t push higher into the 8H supply zone, I’ll be watching for a new supply zone to form mid-week for a more immediate short opportunity.
Will keep this updated — have a great trading week everyone!
This week’s outlook for EUR/USD is leaning towards a bearish continuation.
Price recently respected the 3H demand zone and gave a clean bullish reaction following the expected Asia low sweep. I didn’t manage to catch an entry as it happened quite late in the day. However, that same demand zone now looks to be weakening, potentially leading to another break of structure to the downside.
Alternatively, we could see price push higher from this demand zone and mitigate the 8H supply zone I’ve marked out — which is the origin of the last break of structure. It’s also a strong POI given its location away from liquidity and at an extreme structural point.
Confluences for EUR/USD Sells:
- Multiple breaks of structure to the downside (pro-trend setup)
- Failing 3H demand zone already mitigated
- Liquidity resting below current price
- Strong 8H supply zone sitting above the Asia highs
- DXY is showing short-term bullish momentum, aligning with EUR/USD bearish movement
P.S. If price doesn’t push higher into the 8H supply zone, I’ll be watching for a new supply zone to form mid-week for a more immediate short opportunity.
Will keep this updated — have a great trading week everyone!
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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.