EURUSD 01/9/24

1. Sept.

Here we are at the beginning of September, continuing to follow and track the markets as we do with every Sunday markup that we release. This week, we observed a clear bearish movement. As we move into the new week, we have a scenario suggesting that more downside could occur, while also recognizing the liquidity sitting above the highs. It’s important to understand that the probability of a deeper pullback before any bullish continuation, or an overall shift into bearish order flow, is highly likely given the current market conditions. A deeper pullback would mean lower pricing before a new bullish run continues.

In terms of a potential switch to a bearish outlook overall, we’ll be looking for price to pull back and then move lower before continuing in a trending direction, which is technically the opposite of what we have observed currently. This week, you can see the key levels I’m monitoring: we have our larger time frame refined area of demand, and a high that was created within the 4-hour time frame. We’re currently waiting for the low to be established to give us the high and low for our range. However, I’m expecting the price to come lower and interact with the area of demand, or potentially change the overall trend and direction.

Trade safe. Stick to your risk and always follow your plan.