[Feb 16] WHAT WILL THE DE-ESCELATION DO TO THE EURUSD?

Chapter 7 [Feb 16] WHAT WILL THE DE-ESCELATION DO TO THE EURUSD?

If you've been trading in the past few weeks, chances are, you are very much aware of the Russia-Ukraine border conflict.With the current developments and de-escelation to the eastern european region, this would finally pave way to a much needed pullback to the EURUSD--ultimately improving the risk appetite of investors.

But looking into the bigger picture, USD been oozing with strength lately following the State's inflation dilemma in unity with the Dollar's safe haven nature for investors. And as if that isn't good enough, the ECB is yet to implement game-changing policies for the weakened Euro. But with all that said, what are some the trading opportunities these events has provided us with? Let's check the charts!

[Feb 16] WHAT WILL THE DE-ESCELATION DO TO THE EURUSD?-Pic no.1

Looking at the EUR/USD's current market structure, it is without a doubt bearish. However, orderflow is starting to give us a pullback to the supply as plotted in the charts. Our team is increasingly confident that the Key area of supply will hold as it is the last known movement prior to price breaking structure. Price has also provided a higher time frame market structure shift or change of character. And as the old saying goes, if you want to be on the top of the move, you would need to learn how to read market structure. Our team has illustrated EURUSD's simplified market structure for the reference of those who are still aren't familiar with the concepts.

[Feb 16] WHAT WILL THE DE-ESCELATION DO TO THE EURUSD?-Pic no.2

When it comes to finding good entries, the key area also perfectly lines up with the 50% Fibonacci retracement level and 50 moving average. These psychological levels will definitely add more resistance to price--hindering it from moving forward. With so, we advise everyone to set alarms within the 1.13800 and observe price action as it approaches the area.

And as always, stay reactive not predictive.

You understand and acknowledge that there is a high degree of risk involved in trading with strategies. The above strategies and analysis are provided by the analysts for information purposes only, and do not constitute investment advice.