Forex Trading

EURUSD: Seeking Liquidity in Weekly Selling Zones. Key Intraday Levels

  • Bearish scenario: Sell below 1.0820 / 1.0841 with TP1: 1.0804, TP2: 1.0790, and TP3: 1.0775 with S.L. above 1.0834 (entry below 1.0820) or 1.0861 (entry around 1.0841) or at least 1% of account capital*.
  • Bullish scenario: Buy above 1.0827 with TP: 1.0841 and TP2: 1.0850, with S.L. below 1.0820 or at least 1% of account capital*. Apply trailing stop.

Scenario from H4 chart:

EURUSD trades in Monday’s buying zones and below the uncovered POC* from Wednesday and Tuesday at 1.0826 and 1.0841 respectively, the most recent selling zones, so if the price remains below them or at least with tepid breakouts, a bearish continuation is expected, especially considering the price below 1.0820, to challenge Monday’s buying zone and the possible extension of sales towards 1.08, 1.0790, and the bearish range at 1.0775 more extensively.

However, failure to break below 1.0810 and the breakout of yesterday’s POC at 1.0826 will expand purchases towards 1.0841, from where to consider new sales with the already indicated targets, as long as this selling zone is not decisively broken. The RSI below 50 continues to show bearish momentum.

*Uncovered POC: POC = Point of Control: It is the level or zone where the highest volume concentration occurred. If there was a bearish movement from it previously, it is considered a selling zone and forms a resistance zone. On the contrary, if there was previously a bullish impulse, it is considered a buying zone, usually located at lows, thus forming support zones.

**Consider this risk management suggestion

**It is essential that risk management is based on capital and traded volume. For this, a maximum risk of 1% of capital is recommended. It is suggested to use risk management indicators such as the Easy Order.

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