Key Points from the Chart:
Break of Structure (BOS): The chart highlights a BOS, suggesting that a previous resistance level has been broken, indicating bullish potential.
Demand Zone: There's a marked demand zone (gray box) where price previously reacted strongly. The current price action suggests the possibility of a pullback into this area.
Predicted Movement: The yellow lines illustrate an expected price dip into the demand zone, followed by a strong bullish reversal towards the 1.3000 level.
Analysis Assessment:
Demand Zone Validity: The marked demand zone appears to be valid, as it's based on a previous area of strong buying interest. If the price returns here, it could trigger another bullish move.
Current Market Structure: The price is forming lower highs and lower lows in the short term, hinting at a bearish retracement. However, the bullish structure from the BOS is still intact.
Liquidity Sweep: The chart anticipates a sweep of liquidity below the current low (around 1.29137), which could be a trap for sellers before reversing upward.
My Prediction:
Short-Term: A likely move down to the demand zone (around 1.2885 - 1.2910) to grab liquidity.
Reversal Point: If strong bullish candlestick patterns appear in the demand zone, a reversal towards the 1.3000 level is plausible.
Invalidation: If the price breaks and closes significantly below the demand zone, the bullish bias would be invalid, and the price could head lower.
Break of Structure (BOS): The chart highlights a BOS, suggesting that a previous resistance level has been broken, indicating bullish potential.
Demand Zone: There's a marked demand zone (gray box) where price previously reacted strongly. The current price action suggests the possibility of a pullback into this area.
Predicted Movement: The yellow lines illustrate an expected price dip into the demand zone, followed by a strong bullish reversal towards the 1.3000 level.
Analysis Assessment:
Demand Zone Validity: The marked demand zone appears to be valid, as it's based on a previous area of strong buying interest. If the price returns here, it could trigger another bullish move.
Current Market Structure: The price is forming lower highs and lower lows in the short term, hinting at a bearish retracement. However, the bullish structure from the BOS is still intact.
Liquidity Sweep: The chart anticipates a sweep of liquidity below the current low (around 1.29137), which could be a trap for sellers before reversing upward.
My Prediction:
Short-Term: A likely move down to the demand zone (around 1.2885 - 1.2910) to grab liquidity.
Reversal Point: If strong bullish candlestick patterns appear in the demand zone, a reversal towards the 1.3000 level is plausible.
Invalidation: If the price breaks and closes significantly below the demand zone, the bullish bias would be invalid, and the price could head lower.
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.