Eurodollar Bears Take Control
Eurodollar bears take control in recent sessions. Selling pressure dominates EUR/USD. Price pushes lower with conviction. This signals short-term bearish sentiment. Traders watch for continuation.
Although the market is focused on tomorrow’s release of the FOMC minutes, an event guaranteed to cause a degree of market volatility, it is the release of the CPI and Core CPI numbers earlier in the session which are probably even more important. Of the two releases it is the Core CPI the FED pays the most attention to, and a big influence on the likely timing of any rise in interest rates.
Meantime, the USD appears to have found its mojo once again following last week’s dramatic fall, with the eurodollar bearing the brunt of this resurgence.
Daily Chart For Eurodollar
The daily chart for the eurodollar is particularly interesting where weakness for the pair started last week with the failure to break and hold above the VPOC (volume point of control) in the 1.1167 price region. Friday’s close below the 100 ma appears to have been the catalyst for a pick up in bearish sentiment for eurodollar which saw the pair close yesterday’s trading session on a wide spread down candle at 1.1076 on good volume.
In today’s trading eurodollar has continued lower, so far on good volume, posting a fresh low at 1.1016 at time of writing, eurodollar bears appear to have the bit between their teeth.
From a CSI perspective the euro is currently heavily oversold across a number of time frames, so we may see a bounce higher both overnight and in tomorrow’s London session, but this may simply be a temporary pause as the market awaits tomorrow’s key data from the US.
Volume Price Analysis Confirmation
Volume price analysis (VPA) confirms the bearish control. High volume on down candles shows selling conviction. Low volume bounces signal weakness. Quantum currency strength indicator ranks EUR low against USD.
Trading Implications
Bears in control favor short positions. Watch for pullbacks to resistance. Avoid longs without reversal volume. Anna Coulling’s VPA approach with Quantum tools spots distribution early for timely shorts.
Eurodollar bearish momentum builds. Quantum indicators on MT5 or NinjaTrader make navigating the downside reliable. Stay aligned with volume for confident trades.
Why Markets Fall Faster Than They Rise
Markets often fall faster than they rise. This asymmetry is a well-observed phenomenon. Bull markets grind higher slowly. Bear markets crash sharply. Volume price analysis (VPA) reveals why. It shows professional intent behind the moves.
Psychological Factors: Fear vs Greed
Fear is a stronger emotion than greed. Rising markets build gradually—buyers cautious, adding positions. Falling markets trigger panic. Traders sell quickly to avoid losses. This loss aversion accelerates declines. VPA confirms—high volume on down moves shows conviction selling.
Leverage and Margin Calls
Bull markets encourage leverage. Positions build with borrowed money. When prices fall, margin calls force liquidation. This creates cascading selling. Downside amplifies. Uptrends lack this forced buying. VPA spots it—ultra-high volume at lows signals capitulation.
Structural and Behavioral Reasons
Short selling is easier in declines. No “upside margin calls.” Bad news hits harder—uncertainty drives risk-off. Good news builds confidence slowly. Behavioral bias: People hold losers too long, cut winners early. But in crashes, everyone sells.
Quantum indicators on NinjaTrader highlight this—high volume down candles with Trend Monitor red = bearish conviction.
VPA Insights into Asymmetric Moves
VPA explains the speed difference. Distribution (selling) on high volume drives sharp falls. Accumulation (buying) is quieter, slower. Quantum Accumulation/Distribution indicator tracks this. High volume drops = professionals unloading.
Anna Coulling’s VPA methodology turns this asymmetry into advantage. Prepare for faster falls—tighter stops in downtrends.
Markets fall faster than they rise for psychological and structural reasons. VPA reveals the truth behind the speed. Quantum tools make spotting conviction reliable.
By Anna Coulling
Creator of Volume Price Analysis