๐น Market Overview:
EURUSD continues to show bullish strength as the US dollar faces bearish pressure due to newly imposed tariffs on certain imports. These tariffs have created uncertainty around the dollarโs stability, pushing investors toward alternatives like the euro.
๐ธ Eurozone economic data has been improving, along with a more stable inflation outlook, adding to the bullish momentum.
๐ Technical Overview:
๐ After a strong bullish rally, EURUSD appears to be overextended, signaling a potential cooldown. The rapid upward movement has left imbalances in price action, which the market may need to fill before continuing its trend.
๐ก Key Levels to Watch:
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0.382 Fibonacci retracement โ Minor zone of interest.
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0.618 - 0.65 Fibonacci retracement ("Golden Pocket") โ A high-probability area for a bullish reaction.
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Past resistance turned support โ Expected to act as a key demand zone.
๐ Expected Price Move:
๐ The expectation is that EURUSD will tap into the higher supply zone before initiating a corrective move downward. This correction would help fill the imbalances left behind during the bullish run.
๐ฏ Target Area: 1.05000 - 1.06000
This zone aligns with:
๐น Golden Pocket retracement level
๐น Strong past resistance turned support
๐น Psychological round number (1.05000)
๐น Imbalance-filling for a healthier market structure
๐ Trade Idea Summary:
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Short-term strategy: Wait for price to reject the supply zone before shorting.
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Target: 1.05400 - 1.05000 area for partial profits.
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Long-term strategy: Look for bullish confirmation near the Golden Pocket zone for potential buy opportunities.
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Risk Management: Use a stop loss above the imbalance zone when shorting. When buying, consider a tight stop below 1.04800.
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Fundamental Factors: Keep an eye on US tariff updates and Eurozone economic releases to align with technical analysis.
๐ Trade Update:
The market appears to be rejecting the key zone right now. ๐ Waiting for the pullback!
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