First lets see how our speculations from last week played out.It was said-
The chart says it all. Looks like a mirror image. Please note how the market quickly rejected prices highlighted in green in august 2008. But this time we also need to consider that we have a lot of support (volume traded) below."
Now lets see what happened in the following days:
You can see that price levels highlighted in green indeed got rejected but not as fast as in august 2008.The distribution(volume traded)below provided support and time to establish positions.
Now lets take a look at weekly market profile distribution charts of EUR/USD(6E contract used to analyze volume traded):
In one day we ran the whole last week range.We need to see if responsive buyers(buyers that buy market below perceive value)step in.Rotation back up to area of interest highlighted in yellow at least should provide time/opportunity to establish short posions(from short term scalping to longer term swing trade-depends on your trading style).Support areas of interest marked below