EUR/USD – Falling Into Demand Zone
The move back towards the high we were seeing take place in yesterday’s market commentary continued last night with the market breaking through the high and moving into the supply zone created by Monday’s drop. The market has subsequently now fallen out of the supply zone and is heading into the demand zone created by the move up into the supply.
The size of the drop out of this supply does make me a little edgy we are going to see the market continue to fall but then again you’ve always got to keep in mind the banks have to make the market look as bearish as possible before causing a reversal to take place in order to accumulate enough sell orders to get all of their buy trades placed. We have to keep a close watch on the market now because if it is going to reverse we’ll see it turn at either the demand zone it’s entered today or the lower demand zone created on the 24th.
There’s not enough price action currently to say which zone the market is going to reverse at so we’ll have to monitor the price action over the next few hours to see if there are any signs telling us the market is reversing out of this demand.
USD/JPY – Large Move Back Into Reversal Zone
Yesterday’s swing lower came to an end in the early hours of this morning, since then market has moved all the way back into the zone which created the swing and