As we head into next week, my outlook for EURUSD is bearish, driven by recent market dynamics and key technical indicators. Here's a breakdown of the analysis:
🔹 News Impact: The recent impulsive move in EURUSD, sparked by the Non-Farm Payroll (NFP) and Unemployment Rate reports, suggests a bearish trend could continue. The data has had a significant impact, setting the stage for a potential retracement.
🔹 Volume Profile Insight: We've observed a B-Shape Volume Profile formation, which often signals that a retracement is on the horizon. This pattern indicates that we could see a pullback towards previous levels of interest.
🔹 Retracement Levels: I’m targeting a retracement to the Value Area and Point of Control (POC) of the previous week, which stands at 1.08250. This area could provide a strong resistance point for the bearish move.
🔹 Potential Entry Points: - 1.09360: Watch for potential resistance here for a bearish setup. - 1.08878: Another key level to consider for a potential short entry.
🔹 Invalidation Level: If EURUSD breaks above 1.09481, this would invalidate the bearish outlook. A move above this level could signal a shift in momentum and a potential reversal.
Stay tuned and manage your risk accordingly! Happy trading!