EURUSD MARKET ANALYSIS

 Good morning traders, I hope you're all doing well and have already been actively trading as the volume in the markets is back. Into the markets today I'm looking at EURUSD which I have been in a swing position since the CPI release for this month. Price had been in consolidation between the key H1 & H4 supply zone at 1.10535 & 1.09911 and the H4 demand zone at 1.09042 & 1.08726. Price dropped to the H4 demand zone then rallied back to the H1 & H4 supply zone at 1.10535 & 1.09911 which was the origin of the previous drop to the H4 demand zone at 1.09042 & 1.08726. Price filled the H1 & H4 range from the H1 & H4 supply zone to the H1 & H4 demand zone and back to the H1 & H4 supply zone. Price rallied into supply during the CPI news release last week and formed strong rejections on H1 & H4 with candle closes below supply followed by  a strong drop in 3 H4 bearish candles. Took sell positions during NY session at 1.09900 with SL at 1.10200. Setup taken was a rally base drop, a reversal setup and my target was at 1.09000.

Price retraced to retest supply and formed rejections with candle closes below supply followed by a strong drop confirming the bearish sentiment. Price gained strong bearish momentum and  dropped 135 pips to 1.08500, breaking the H1 & H4 demand zone at 1.09042 & 1.08726 and forming lower lows. I anticipate a retest of the broken demand as new supply before a potential continuation of the drop lower.

Price consolidated inside the key broken H1 & H4 demand retested as new supply and dropped to 1.08750 and failed to form candle closes below the zone and instead retraced to retest the previous H1 high at 1.09100 and faked out a break of the zone on H1 but on H4 price formed a rejection wick with candle close inside the zone followed by a strong drop. Price gained momentum during London session dropping 50 pips to 1.08600, forming candle closes below the zone confirming the bearish sentiment. Price gained more momentum into NY session dropping 95 pips in strong all bearish H1 candles to 1.08250, forming lower lows showing a potential continuation of the drop as previously mentioned. Price retraced during Asian session rallying back to 1.08650 and I anticipate a pullback to 1.08725 for a retest of the zone before a potential continuation of the drop to the targeted zone at 1.08000.

Price retraced back deeper into the key H1 & H4 supply zone during London session and faked out a break of the zone on H1 & H4 with candle closes above the zone. Price then formed a strong H1 bearish engulfing candle with candle closes back inside the supply zone. Price formed weak H1 bearish candles all with candle closes inside the zone followed by a slight drop to 1.08725. Price failed to form candle closes below the zone and instead retraced back to the previous H1 high at 1.09000 after which price formed a strong rejection wick on H1 followed by a strong drop with candle closes below the H1 & H4 supply zone confirming the bearish sentiment. Price gained strong bearish momentum dropping by a constant push away from the zone back to the previous H1 lower low at 1.08250. Price slightly consolidated before a continuation of the drop in which price has dropped 105 pips from the key H1 & H4 supply zone at 1.09042 & 1.08725 where the scale in positions were and 180 pips from the major H4 supply zone and entry point 1.09900 and my target is at 1.08000.

Market opened this week and retraced to retest the H1 & H4 supply zone at 1.08800 and formed strong rejection wicks with candle closes inside the zone followed by a strong drop by a constant push away from the zone. Price gained momentum during London session dropping back to the previous H1 lower low at 1.08300. Price retraced to form a lower H1 high at 1.08360 then gained more stronger momentum during NY session dropping strongly to the target area at 1.08000, a 190 pips drop back to the major H4 demand zone at 1.08000 & 1.07600. Price has filled the major H4 range from the major H4 demand zone at 1.08000 & 1.07600 to the yearly highs at 1.11300 and back to the major H4 demand zone at 1.08000 & 1.07600.