EURUSD - Strong Market Structure with a Potential Pullback?

3月12日

The EUR/USD pair has been displaying strong bullish momentum recently, maintaining an overall uptrend. However, despite this strength, I am expecting a temporary pullback before any further upside movement. The price has reached a key resistance level, marked in red, which has historically acted as a significant barrier. The market has reacted to this level with a rejection, indicating that buyers are struggling to push through at this point.

Key Levels to Watch

Imbalance Areas and Support Zones (Blue Zones)

• These zones represent areas where price could retrace before making its next significant move. If price finds support at one of these zones and forms a bullish confirmation, we could see another push to the upside.
  
• However, if price fails to hold the first blue zone, it is likely to drop further into the second marked imbalance area. The second zone would then become the next key level to watch for potential support.
  

Break of the Support Zones

• If both support zones fail to hold, this would suggest that buyers are losing control and that a deeper pullback is underway. In this case, the overall bullish momentum may slow down, and a shift toward a more bearish sentiment could occur in the short term.
  

Current Resistance Zone (red zone)
The red zone marks a key resistance level that price has struggled to break in the past. If price successfully breaks above this zone with strong momentum and closes above it, this would confirm further bullish continuation. A breakout could signal the potential for new highs, as buyers regain full control of the market.


Impact of CPI News on EUR/USD

Today's Consumer Price Index (CPI) report had a notable impact on the EUR/USD pair. Upon release, the market experienced a sharp upward spike, reflecting an immediate reaction to the inflation data. However, this move was short-lived, as price quickly faced a strong rejection and dropped back down. This type of movement suggests that market participants are still processing the implications of the inflation data and its potential effect on future monetary policy decisions. The Federal Reserve’s stance on interest rates will be a key factor in determining how the pair moves in the coming days.

Trade Plan and Expectations

• I will be watching for a potential retracement into one of the blue support zones. If price finds support and shows a bullish reaction, I will look for confirmation to enter a long position.
  
• If price breaks below the first support zone, I will wait for a test of the second blue area before making any trading decisions. A failure to hold this level would indicate further downside potential.
  
• If price manages to break and hold above the red resistance zone, this would be a strong bullish confirmation, signaling further upside movement. In that case, I would anticipate a continuation of the uptrend.
  

Overall, while the market structure remains strong, a short-term retracement is likely before the next move takes place. It is important to remain patient and wait for clear confirmations at key levels before entering a trade.

What are your thoughts on this setup? Do you see further upside potential, or do you think we could see more downside before buyers regain control?

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3月13日

交易進行

EURUSD keeps testing the first imbalance level, i'ts starting to look a bit weaker and i'm expecting it to fall through the first level