Profound Analysis Unveils EURUSD Crash Potential Its Dynamics

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After conducting a comprehensive analysis of the EURUSD chart on the 1W timeframe, the predicted starting momentum of the market crash has been unfolding with remarkable precision. However, it is essential to note that the recent release of the Consumer Price Index (CPI) has triggered a supply zone that possesses the significant potential to initiate a trend reversal and amplify the downward momentum.

For a more detailed understanding of the final destination of the market crash, I invite you to refer to my comprehensive weekly Euro analysis, which provides further clarification on the matter.

Furthermore, when examining the Euro's market structure on a daily timeframe, it becomes evident that a shift toward a bearish market structure is occurring. The target price for this downward movement is identified at 1.05674. To predict the subsequent market moves accurately, it is crucial to have a solid grasp of market structure principles and a deep understanding of supply and demand dynamics within this context.

After the final bullish Break of Structure (BOS), it has been observed that multiple candles attempted to break out with significant trading volume but got strongly rejected, which can indicate the presence of a substantial supply level overhead. This situation increases the likelihood of a potential Change of Character (ChoCh) occurring and it did. These instances can be regarded as early failure signs for the prevailing trend.

The selected supply zone was chosen for the potential pullback as it serves as a significant source of momentum. Moreover, this particular supply zone exhibits significant inefficiencies on lower timeframes, reinforcing its reliability. It is crucial to acknowledge that the Euro's upward trajectory cannot surpass the selected supply zone due to the absence of reliable bearish propulsion from higher levels. Furthermore, even the most reliable candle observed was a mere 0.05% and located at the upper extremity of the swing high. Therefore, any other supply zones not adhering to logic, basic market structure principles and price action fundamentals are not considered viable.

Notably, the liquidity created during the mid-swing high leg displays substantial demand imbalances, strategically positioned to amplify the crash's momentum and propel it towards my targeted price.

By refining our understanding of these critical market dynamics and adhering to professional trading practices, we can make informed decisions and capitalize on potential trading opportunities. It is essential to approach market analysis with a disciplined mindset and employ proper risk management techniques to optimize trading outcomes.

-Your Economist, Mahdi Kheirddine
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While I have mischaracterized the entry during this crash, I have successfully forecasted its potential and dynamic nature. In the near future, I will be publishing a new article outlining the latest updates in the market, specifically focusing on the 1D chart. Currently, I am closely observing the early pivotal signs of an impending pullback, which holds significant implications for the market.
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Trade Initiated!!!
Beyond Technical AnalysisPivot PointsSupply and Demand

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