We are currently observing the US Dollar trading in a sideways pattern, situated just behind the daily supply and demand zones. This situation has resulted in the accumulation of a significant number of stop-loss orders on both the sell and buy sides. Additionally, there are fundamental drivers expected to impact the Dollar later this week.
Given this scenario, it's crucial for us to carefully evaluate our trading strategy. We need to determine the most logical approach to trade the EUR/USD lower and the Dollar higher. Up to this point, we have refrained from initiating a short position, as we missed the opportunity to enter at the supply zone last week.
However, if we witness the market triggering the yellow stops on the chart and subsequently targeting the white liquidity zones on the chart, it could strongly suggest institutional involvement. Let's continue to closely monitor the market to see how this situation develops.
Given this scenario, it's crucial for us to carefully evaluate our trading strategy. We need to determine the most logical approach to trade the EUR/USD lower and the Dollar higher. Up to this point, we have refrained from initiating a short position, as we missed the opportunity to enter at the supply zone last week.
However, if we witness the market triggering the yellow stops on the chart and subsequently targeting the white liquidity zones on the chart, it could strongly suggest institutional involvement. Let's continue to closely monitor the market to see how this situation develops.
Daniel P. Fadejev