2022-11-18 • Updated
As I earlier indicated in my article this week, I am expecting an upward push from the Dollar as a reaction from the Demand zone I have marked out. The PPI release earlier moved prices a bit, but lacked sufficient momentum to cause a significant break of structure - and thus, no change of trend. Even though my bias remains the same, however, now I expect the move to begin after price must have completed a divergent move inside the demand zone.
The strong numbers from the Retail Sales reports and the Philly Fed Manufacturing index also did its best to kick-start the expected movement. Let's take a look at a few analyses based on this bias.
The Hourly timeframe on EURUSD presents a clear selling opportunity from the retest of the Demand zone as a completion of the AMD pattern. The break of structure created by the impulse from the PPI figures yesterday is also a significant indication of a likely persistent bearish impulse.
Daily timeframe on GBPUSD places price right next to a major supply zone that's resting within view of the 200-Day Moving Average. We have also seen the liquidity grab from the horizontal blue line; an added confirmation for a rejection and reversal.
Even though price is currently trading at the 100-Day moving average, the momentum suggests a likely break above the MA in order to create divergence and also give room for price to recover the imbalance between the 76.4% and 88.2% of the Fibonacci retracement. Once this move has been completed, I will be looking for opportunities to short the market.
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