EURUSD MARKET ANALYSIS

 Good afternoon everyone and Happy new month. It's an amazing start of the beautiful month of August after a busy ending of July which was flooded with fundamental news events and also profitable trade opportunities. Into the markets today, I'm looking at EURUSD and GBPUSD which I'll drop the analysis on the next post. EURUSD price dropped to a key H1 & H4 demand zone at 1.10390 & 1.09832 which was the origin of the previous rally to the H1 high at 1.11400. Price broke below the H1 & H4 demand zone and formed a lower low at 1.09540. Price retraced to retest the broken demand as new supply before a potential continuation of the drop lower. Price retraced to 1.10390 then dropped back to the H1 lower low at 1.09540. Price failed to break below and instead retraced back into the zone. Took sell positions during London session at 1.09907 with SL at 1.10230. Setup taken is a drop base drop, a continuation setup and my target is at 1.08500.

Price retraced to retest supply and formed strong rejection wicks on H1 & H4 followed by a slight drop to 1.09740 showing slow bearish momentum as I wait for NY session. I'm waiting for price to take out the H1 low and form a lower low to confirm the bearish sentiment. Price gained momentum during NY session dropping 70 pips to 1.09300 forming a lower low confirming the bearish sentiment. I anticipate a retracement back to supply before a continuation of the drop.