EURUSD MARKET ANALYSIS

 Good afternoon traders, I hope you've all enjoyed the long weekend and you're ready for the new trading week. Into the markets this week I am looking at EURUSD where price broke a key H4 & daily demand zone at 1.09040 & 1.08730 and formed a lower low at 1.08500. Price retraced to retest the broken demand as a new supply zone before a continuation of the drop lower. Price dropped to 1.08200 forming new lows then retraced back to supply forming candle closes below supply. Market opened this week with price still below the supply without breaking the previous H1 high at 1.08730. Took sell positions during London session at 1.08610 with SL at 1.08820. Setup taken is a rally base drop, a reversal setup and my target is at 1.07800.

Price dropped 48 pips to 1.08110 confirming the bearish sentiment and forming lower lows. Price retraced to 1.08375 forming a lower high before a continuation of the drop lower. Price gained more bearish momentum dropping 90 pips to the 1st target on H4 and daily chart at 1.07800. Target hit. Price has gained more momentum dropping below 1.07800 and forming lower lows. I anticipate a potential continuation of the drop lower to the next major daily demand zone at 1.07300 & 1.07000 with my target at 1.07400.