EURUSD 14/7/24

14 Tem

The EU this week sits within a bullish trend and bullish range. This, of course, goes against the higher timeframe biases that we have discussed over the last several weeks in our Sunday markups. However, we follow what the price shows us, not what we want it to do.

Coming into this week, we have a relatively neutral bias in terms of direction. Bullish, of course, is our main priority, as that is the way the market is showing us it wants to go. However, the break of the four-hour high, highlighted by the last bullish range, is relatively weak on a larger scale. This leads us to believe there is potential for a pullback or a reversal/continuation of higher timeframe price action.

This brings us to our predictions for this week. First, we need to confirm our four-hour high, which we have not yet confirmed. We have a clear four-hour low, giving us our current bullish range. Based on this, we're looking at the area of demand at the base to push the price higher or for the price to continue higher without interacting with this area at all. If this area fails, we'll be looking at a bearish four-hour range, and ultimately, the price will come down to find a higher timeframe order block to either continue moving higher or break lower, confirming the higher timeframe bias we have been discussing.

Key factors to watch are liquidity across the lows, which will build a lot of momentum if we start to sell off, and the daily candle to see where it closes, as there could be potential for a high timeframe rejection.