EURUSD 4/8/24

4 août

This week's chart on the EU has several interesting points to follow. Firstly, we observed a significant surge through the liquidity highs that were established during the previous downward price movement early last week. This push was a direct result of news from the US regarding the Fed rate cut and other economic events. Consequently, we start this week at the top of the news range mentioned above.

To stay within the current range and price action seen at the beginning of this week, we anticipate a potential pullback to the 50% mark, as indicated from the high to low move. This would involve the price retreating from the supply tapped into during the last hours of Friday's price action. Following a sell-off, we would track the sells into the discount pricing of this range and possibly deeper into the demand marked at the base of our move.

If this scenario plays out, we will look for that demand to either push the price back up to reach our range high or for it to fail, leading to an overall bearish shift.

This week, we have fewer high-impact news events, so the market might not be as volatile as last week. As always, use this chart as a blueprint for potential moves. Nothing is guaranteed, and all biases can change, so be prepared to adapt to market conditions.

Trade safely, stick to your risk management, and always follow your plan.