EUR/USD Shorts from 1.11000 back down to demand

19 ส.ค.Price action for EUR/USD is very similar to GBP/USD (GU). If GU continues rising to mitigate that deeper supply, it aligns with the 1.11000 level in the 20-hour supply zone for EUR/USD. I expect the bullish pressure to gradually die down and for price to eventually mitigate this supply. Therefore, I don’t expect a major move on Monday, but this scenario could play out over the week.

If price sells off from the 20-hour supply zone, I will then wait for scenario (B), which involves the mitigation of the daily demand that caused a break of structure to the upside. There's also a refined version of this demand on the 19-hour time frame, which looks promising for buys to continue the bullish trend.

Confluences for EUR/USD Sells:

- Bullish pressure is getting exhausted, suggesting a potential retracement.

- There is a lot of liquidity below, along with imbalances that need to be mitigated.

- This outlook aligns with expectations for the DXY to rise slightly.

- This is a counter-trend short-term trade with the goal of eventually rejoining the pro-trend.

P.S. If price reacts to the current imbalance and goes back down, I will look to enter buys to take price back up to the supply zone. However, buys are favorable due to the current bullish trend.