After a steady uptrend on EUR/USD, we see that important trend line has been broken and the pair has been dropping consistently for 2 days. One of the reasons why EUR/USD is dropping is possibly profit taking which was enacted by hedge funds as French elections grow closer. Today POC zone for selling is 1.0775-90 (D H3, ATR Pivot, inner trend line, EMA89) while we might expect buyers within 1.0665-85 zone (Order block, D L5, W L5, 78.6). Any break of Upper POC range (1.0790) and Lower POC range (1.0665) should establish new intraweek trend. At this point we need to treat this as range play with 2 zones where EUR/USD might react.
- D H3 – Daily Camarilla Pivot (Daily Resistance)
- POC – Point Of Confluence (The zone where we expect price to react – aka entry zone)
- D L5 – Daily L5 Camarilla (Strongest Daily Support)
- W L5- Weekly L5 Camarilla (Strongest Weekly Support)
- Bullish Order Block – The height of bearish candle prior to move up
EURUSD Hourly Chart