EUR/USD – Consolidating Inside Daily Supply Zone
The second push into the daily supply zone we were seeing take place when yesterday’s market commentary was published did not continue last night. Instead the market fell back down to the low made on Monday and has been consolidating between this low and yesterday’s high ever since.
The demand zone I marked in yesterday’s post did cause a small up-move to take place, but this was not a zone you could have traded due to it being found inside a daily supply zone. I do think we’re going to see a reversal out of this daily supply zone occur, but I need to see a sharp move down below the lows take place before attempting to go short, as a break will confirm to some extent the bank traders have got sell trades placed at the swing highs of the consolidation.
USD/JPY – Reversal In Progress ?
The move out of the demand zone that was taking place yesterday has continued today, and there is now more evidence to suggest that we actually be seeing a deep pullback reversal take place in the market.