In our forex webinars we now also consider the order boards – in other words those potential buy and sell orders posted by the institutions, & if you can get hold of these I would strongly suggest you watch them (particularly) at the beginning of any session, as they really do influence the price action.
Whilst this morning’s level confirmed the selling we have been seeing driven by US dollar strength and equally concerns over Greece, what’s more important is where price is likely to pause & perhaps even rebound slightly. The 1.0885 was the first bid level and is was no surprise to see this hit and buyers step into the market. This doesn’t negate the bearish sentiment for eurodollar, but at least we know where the market is heading in the short term and here a picture paints a thousand words, with the price action hitting the MT4 support and resistance indicator precisely at this level, and reinforced with a pivot low. The longer term outlook remains very bearish for the EUR/USD with the trend monitor continuing to remain bright red in this timeframe. In addition the buying volume can be clearly seen with the narrow spread down candles on high volume and confirming market maker buying at this level.
Finally, the price action continues to remain well below the VPOC indicator ( volume point of control) and with the US dollar surging higher, and issues over Greek debts continuing to worry euro buyers, the two currencies are working in parallel to drive the pair lower.