EUR/USD – Moving Towards Yesterday’s Highs
EUR/USD is currently in the process of moving towards yesterdays high, if this high get broken we could see further up-movement take place.
The market almost returned to the demand zone I marked in yesterday’s post, but I was not expecting the market to respect this zone anyway so I wouldn’t have traded it even if the market did end up hitting it. With the move higher we have seen today there is a high probability we’ll see the market will break through yesterday’s high either tonight or tomorrow. If this high gets broken, it would be a strong signal the market is going to continue moving into the daily supply zone seen above.
For now monitor the market to see if yesterday’s high ends up being broken by a move higher. If it does get broken, watch for a reversal to begin around the supply zone seen inside the daily supply zone, as this is the last point in the market where the banks could have got a large number of their sell trades placed. If the market fails to break the high, expect the market to fall through the demand zone and back into the daily buy zone where this up-move originated from.
USD/JPY – Supply Zone Broken
The supply zone which formed from the drop that took place on Tuesday has been broken today by a move higher which began early this morning.