EURUSD technical analysis is no longer bullish. A strong supply imbalance on the monthly timeframe has taken control. Buying EURUSD smaller timeframes is suicidal in this scenario. A new year has started with EURUSD right at a strong supply imbalance where a decent bearish reaction is expected. EURUSD technical analysis using supply and demand imbalances is attached below.
EURUSD chart for the monthly timeframe is attached below. There are three strong imbalances, the top one is the supply zone that has just gained control. Remember that this is EURUSD monthly chart, it’s a long-term technical analysis that can be used for shorter-term and intraday Forex strategies if you are not a supply and demand trader.
EURUSD could continue to rally further, however, it’s not what usually happens when such a strong imbalance gains control. It’s right at these imbalances where reversals could happen. We are talking about odds, these odds give us an edge. It does not mean that EURUSD could continue to rally higher eliminating the supply imbalance that is now in control. If you are an intraday Forex trader using smaller timeframes like M5, M15 or even H1 (hourly), those trades must have been losses. Why? Take a look where EURUSD Forex cross pair is located. The monthly chart attached below is self-explanatory.
Supply and demand Forex trading strategy
EURUSD chart for the monthly timeframe is attached below. There are three strong imbalances, the top one is the supply zone that has just gained control. Remember that this is EURUSD monthly chart, it’s a long-term technical analysis that can be used for shorter-term and intraday Forex strategies if you are not a supply and demand trader.
EURUSD could continue to rally further, however, it’s not what usually happens when such a strong imbalance gains control. It’s right at these imbalances where reversals could happen. We are talking about odds, these odds give us an edge. It does not mean that EURUSD could continue to rally higher eliminating the supply imbalance that is now in control. If you are an intraday Forex trader using smaller timeframes like M5, M15 or even H1 (hourly), those trades must have been losses. Why? Take a look where EURUSD Forex cross pair is located. The monthly chart attached below is self-explanatory.
Supply and demand Forex trading strategy
Set and Forget supply and demand trading community
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