A strong monthly imbalance gained control of EURUSD last month at around 1.0654. As explained in previous EURUSD forex cross pair analyses, we had a strong bearish bias, but once a strong imbalance on a big timeframe like the monthly takes control, going short in smaller timeframes is not allowed and is suicidal.
Look at the strength of that monthly imbalance on EURUSD made of several strong, wide candlestick bodies. EURUSD Forex cross-pair has already reacted to that imbalance. It moved around 8.10% since the price retraced to the imbalance last March 2020.
Potential long opportunities could be created in the next weeks. We must put this imbalance into context and decide where and how we will trade EURUSD.
As explained in a previous EURUSD forecast analysis dating back to August 2019, we had spotted that monthly imbalance, and we expected a strong reaction from it.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances on EURUSD.
Watch the EURUSD video forecast analysis.
Trading supply and demand imbalances are ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings, then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
You should not worry about fundamentals or earnings announcements unless you do very short-term trading and scalping.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has a name, and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
Join our professional forex trading course to learn how to trade using our supply and demand trading strategy.
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