iEUR/USD – Fallen Into Daily Demand Zone
Today EUR/USD has fallen into the daily demand zone which formed back on the 5th August, I do think we are going to see some kind of move higher originate from this daily demand but so far no signs of a reversal have appeared in the market.
I think if a move up does begin from this demand it will terminate somewhere inside the supply zone closest to the current market price. Although the banks did not place as many sell trades here as they did when the supply zone at the top of the move down was created, I still think this is a better place to look for entries short because I don’t believe we are going to see a big move higher take place from this daily demand zone.
Ultimately I think the market wants to move into the daily buy zone seen just below the 1.10000 level, the reason I say this is because the buy zone marks the point where the banks either came into the market and took a really large amount of profits off their sell trades or placed a really large number of buy trades into the market, at the moment it’s not possible to tell which one it is but in any case when the market comes back to this zone the banks are probably going to take more profits or place more buy trades so a big move higher is likely to take place.
Tonight watch for a move out of the daily demand zone, if no move higher occurs and instead the market breaks the zone and continues falling await more price action before going long or short.
USD/JPY – Falling Out Of Daily Supply
Just this past hour we have seen USD/JPY fall out of the daily supply zone it was moving back into yesterday night. Although I did say if we saw a move out of the zone it’s likely a reversal is taking place I’m still hesitant to consider what we’re seeing now as a full-blown reversal.