Will EUR Rise Over USD?

Dynamic trend: Turned up
Background: W1 – very weak; D1 – weak
Phase: Markup
Support: 1.066
Resistance: 1.079



EURUSD: Hourly

EURUSD: Hourly


Point 1: We can observe “Shakeout” with very large volume and a wide range, on a weak congestion zone. This movement alone indicates absorption of supply, but the subsequent down-bar indicates that the supply is still high, and the market is not ready to grow.

Point 2: “Test” with a low volume and an average range. Follow up-bar indicates the success of the maneuver.

Point 3: There was a breakout of the congestion zone with a high volume and wide range. In TF M15, a successful test occurred and then continued to grow.

Suggested Strategies

Strategy 1: Consider buying if:

  • The price breaks out the resistance level 1.079 and
  • «No supply» occurs.

Strategy 2: Consider to buy if:

  • The price pulls back to the support level 1.066;
  • «No Supply» appears (down-bar with a narrow range and a low volume);
  • And the price reverses up.

Strategy 3: Consider going to sell if:

  • The price breaks down the support level 1.066 and;
  • «No Demand» appears (up-bar with a narrow range and a low volume).


You can search «No Demand» and «No Supply» on a lower TF.

Know more about CONGESTION ZONES


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