Revisiting EURUSD. I noticed how my thrill for simplicity can lead to being complacent. For a change in the current trend, at least a break of structure has to take place on slightly high time periods, similar to the one on the hourly chart
The entry was based on the test of the last point of supply but at the time the image was taken, price was creeping up so my stop placement had to be revisited. It ended up having to be shifted to a above the distribution structure, see below
With where it is now, I decided to close 80% of the position given the potential of a bullish takeover as the greater structure looks like an absorption
Price is seeing some demand coming in at the current zone marked out. If this holds true, we may see a resumption of the dominant uptrend on the macro lens.
The DBD area price is currently in could be an issue for continued upside but should we have a violation of the zone, the trend could really be setting up for a re-run.
In the more detailed image below, assuming price is pushing for bulls and the DBD area isn’t an issue, the supply area at $74.000 could be the one to bring price for a retest.
The horizontal line at $54.300 is to show the nearest HL in the bigger picture. For price to confirm a crashing oil market (or a less dramatized term - bear market), it would need to clear that HL to form a new low (LL), then we can talk. For now, we are still in an uptrend, aided by the fed reconstruction bills, the world opening up slowly, flights increasingly taking off … the petroleum market seems pretty good to regain ground fundamentally.
…we see the strongest 2 day recovery since the sell off began in June/July. Giving buyers hope that, the sellers may be losing ground.
If you also zoomed out your daily charts, you’ll notice how the distribution-like structure starting Q1, rising lows give the structure a reaccumulation description than a distribution. Price broke an uptrend dynamic support level to shake off some weak hands, but this looks very close to a reestablishment of a bullish trend.
Looking for entries would seem very possible around where the first LH was broken as seen below
Along GBPJPY, I went into CADJPY
Along GBPCHF – which I had initially missed an entry at 1.25040, I went into AUDCHF & EURCHF all of which I’ll share at a later stage
Should price close above the horizontal lines on CHF pairs — which is a major LH(lower high), buyers are out of the woods and will switch from active to overview monitoring
The link above is on a thread I just opened a few hours ago for the guys who’ve been following with interest.
Just in case you have been following the thread and are interested to continue doing so… I may be unable to sustain both threads simultaneously so please pop by and we can continue with trading Wyckoff with supply/demand
