EURUSD MARKET ANALYSIS

 Good morning traders, I hope you're all doing well. It's a bright Thursday morning as I'm still holding my EURCAD shorts positions which is currently 150 pips deep in profit from the analysis I dropped on my previous post. Into the markets today I'm looking at EURUSD where price formed a supply zone on H1 & H4 at 1.12548 & 1.12094 after rallying strongly and creating new highs at 1.12600. Price has been in consolidation at this level since Monday and finally formed a lower low at 1.11800 yesterday during NY session. Price rallied into supply and formed strong rejection wicks on H4 with candle closes inside supply followed by a drop to 1.11800 with candle closes below supply. Took sell positions via sell limit orders at 1.12100 with SL at 1.12400. Setup taken is a rally base drop, a reversal setup and my target is at 1.10700, at the previous broken supply zone at 1.10670 & 1.09823.

Price first rallied to 1.12300 putting my positions in drawdown before the anticipated move. Price formed a candle close below supply on H1 forming a confluence for the shorts. Price consolidated at supply during London session into NY session but formed multiple candle close below supply confirming the bearish sentiment. Price dropped in one strong H1 bearish engulfing candle to the 1st H1 low at 1.11800 during NY session open. Price gained  more bearish momentum into the NY session dropping strongly in all bearish H1 candles confirming a shift in market structure to bearish. Price has dropped 90 pips to 1.11190 taking out previous lows and forming lower lows and still showing more bearish potential. I anticipate a continuation of the drop lower to the daily demand zone at 1.10670 & 1.09832.