EURUSD AnalysisOleg Alexandrov
On this morning, Giulio asked to analyze #EURUSD.
I wrote to him: I see global support around 1.1
Since that time EURUSD gained from 1.11175 to 1.11255. Why did I write about strength? Let’s study the chart in more detail.
- 1) Price broke down psycho level 1.1. Note the range and volume. Activity gradually increased amid narrowing of the range. This is #EVRB (lack of bearish Result amid spent Efforts)
- 2) This is extremely high volume on up-bar with closing at highs. Usually, I am suspicious about too-high-volume up-bars as they often contain hidden weakness. However this time it was genuine strength. And this strength got confirmation later.
- 3) Here is it. Lower-than-average volume on down-wave. This is exhausting of selling pressure around 1.1 level where #EVRB has appeared
- 4) Demand bar. The strong response to EVRB+STRONGBAR+NS sequence.
- 5) This is a tiny penetration of 1.1 level. Market just teased with traders. It a) triggered SLs of buyers under the “strong reliable support” level 1.1 and b) encounter sellers to enter shorts. This is really cruel game. I’d like to interpret this bar as #SLKB.
After a strong sequence around 1.1, market advanced higher and confirmed its strong character.
- 6) Demand bar
- 7) Demand bar
While the price is holding above 1.111 – market should be analyzed from the bullish point of view.
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