EURUSD - Explanation Analysis

Hi Everyone, here is my analysis and explanation on the move you have seen in EURUSD after the CPI news yesterday. #EURUSD #CPI

Key indications of a potential bearish (#bearish) move:
- Overall market structure is moving down
- Market has been creating new lower highs and new lower lows
- Market was trading below key levels in the market, which is expected to tap into those and bounce off quickly to the down side.

Technical Analysis:
We can see that price had rejected on the key level at the top, highlighted by the green box - around 1.0185
In this case, I have looked for the most recent order block, which is highlighted by the red box, around 1.0085

We can see in this case that the market was creating some liquidity just above the order block, which shows a highly probable chance of price coming back down to clear that liquidity and collect orders placed on the order block.
So, that's the indication #1 that price would have to come down.
The liquidity created is indicated by the white trend line.

Indication #2 - Price was failing to break above the key level around 1.0185 and it is likely that a move down would follow to be able to collect more buyers to try and break that level. So, again, the #structure was indicating that it needed a move to the down side.

Indication #3 - if we look at the RSI (#RSI) it is indicating that the market is overbought (#overbought) which shows adds to the confluences above, increasing the probability of a next move down.

I hope you can spot these indications next time the market creates similar structures and you can place your trades on the right side of the move.

If you have any questions or need any help, please leave it in the comments below!

Thanks,
Gaspar_Trader