Current Market Status on 4hr : Bullish (Weak)
Reason: Significant High's taken and Supply broken through
Last Friday's NFP wasn't a false move.
Even with Monday's relatively minor 30 pip rise by Thursday Open we had broken through 2 high's and were trading in regions not seen since March last year.
The CPI/PPI news didn't stem the tide much and by Friday close EU had risen 250 pips or 2.5%
Looking ahead price could:
1) Continue to rise and maybe find Resistance at the next 4hr Supply zone starting at 1.132
2) Some profits taken and buyers get back involved at the Supply turned Demand Zone
3) More profits get taken and attracted by the imbalance finds buyers in previous demand zones
Personally I expect a bit of a sellof before price continues to rise. This is informed by the fact that there are no big news events to help the USD
"With no major high-impact events on tap over the next several days and the Fed entering its blackout period ahead of its July 25-26 meeting, there are no significant catalysts that could cause the market narrative to shift in favor of the U.S. dollar. Against this backdrop, EUR/USD could extend its recent advance, but its upside potential may be limited given the pair's overbought conditions in the FX space" Daily FX.com
Reason: Significant High's taken and Supply broken through
Last Friday's NFP wasn't a false move.
Even with Monday's relatively minor 30 pip rise by Thursday Open we had broken through 2 high's and were trading in regions not seen since March last year.
The CPI/PPI news didn't stem the tide much and by Friday close EU had risen 250 pips or 2.5%
Looking ahead price could:
1) Continue to rise and maybe find Resistance at the next 4hr Supply zone starting at 1.132
2) Some profits taken and buyers get back involved at the Supply turned Demand Zone
3) More profits get taken and attracted by the imbalance finds buyers in previous demand zones
Personally I expect a bit of a sellof before price continues to rise. This is informed by the fact that there are no big news events to help the USD
"With no major high-impact events on tap over the next several days and the Fed entering its blackout period ahead of its July 25-26 meeting, there are no significant catalysts that could cause the market narrative to shift in favor of the U.S. dollar. Against this backdrop, EUR/USD could extend its recent advance, but its upside potential may be limited given the pair's overbought conditions in the FX space" Daily FX.com