EUR/USD – Daily Buy Zone Broken
The drop which began after yesterday’s spike higher has continued today, and the market has now completely dropped through the daily buy zone and is heading into the other daily buy zone found below.
No move higher into the supply zone created by the spike occurred yesterday, which meant it would have been difficult to get any sell trades placed to capture today’s continued move lower. With the market now heading into the lower buy zone, I don’t think it will be long before we see a move higher take place that pushes the market into the sell zone seen at the top of the image, or the supply zone created by yesterday’s spike. The daily buy zone is 140pips wide so the market could end up traveling quite deep into the zone before it actually turns and moves back to the upside.
For now you just need to wait until the market has dropped deeper into the zone before looking for entries long. There isn’t really much point in going short at the moment not only because there aren’t any technical levels we can use to get a short trade placed, but because the profit potential of a short trade w