EURUSD possible downside moves

12 lut 2023

Euro to the US dollar is tapping into a daily demand, just like the other U.S. dollar pairs we have shown in our Sunday markups.

We have only broken short-term structures. To the downside on the floor our time frame. So more downside is possible. But without taking a major low we can't rush into any long-term ideas just yet. If we see a significant pullback and a reaction from one of our areas of supply above, then we can look to go short. As stated in our other markups, we had the CPI coming this week, so we will see some shifts in this market.

Understanding a short-term structural break does not tell you a long-term trend is going to be a key point of this week. Overall I am looking for short ideas on this, but I won't be taking any unless we have a very clear indication that sellers are present.

As stated in our other mark-ups, we will be looking at smaller timeframes to find possible downside moves, but I am expecting a retrace for this pair the same as the British pound to the US dollar.

How this pair reacts on retrace is going to determine what we can expect for the next session.

Lower, we have a fair value gap along with an unmitigated area of demand. So seeing how Price reacted, this area is going to be interesting.