As expected and mentioned in previous EUR USD long term forecast 2020 last 10th April 2020 and even a few more weeks back, a very strong monthly imbalance gained control on EURUSD last March 2020 around 1.0654 and it has not stopped rallying ever since. As explained in previous EURUSD analyses, we had a strong bearish bias but once a strong imbalance on a big timeframe like the monthly takes control, trading shorts is a bit of suicidal behaviour.
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 as expected since it retraced to the imbalance last March 2020.
Long term longs are possible, if monthly highs are eliminated we might see an even stronger bullish impulse as a reaction to that strong demand imbalance. We need to put this imbalance into context and decide where and how we will trade EURUSD.
This is the kind of price action technical analysis you will learn in our forex 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.
Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.
You can visit our Forex Technical Analysis page to view more potential trades.
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 is it that you see positive earnings and 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 gaining control.
Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.
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 got 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.
If you want to learn how to trade forex using our supply and demand trading strategy, join our supply and demand Forex trading course.
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