FX.co ★ EUR/USD

Hello traders, Market structure and trading scenarios based on option levels. By analyzing options, a clear market structure can be identified, forming several trading scenarios for the current week. Current market situation: The balance zone is located in the range of 1.15056—1.15943. Maximum price volatility is expected within this zone. Of particular importance is the upper part of this zone, where a local resistance cluster is located at 1.15431—1.15490 with significant option barriers. Trading ideas and rationale: Priority strategy: Sales. Rationale: The overall market sentiment, based on the distribution of option flows, remains bearish. Entry points: — Ideally: a price return to the range of 1.15431—1.15490 with the formation of a bearish signal. — Optimal: reaction and bounce from the upper boundary of the balance zone at 1.15943. Targets: Support range 1.14630—1.14372. Secondary strategy: Counter-trend purchases. Rationale: The level of 1.14630—1.14372 is a strong level of option support, from where a market reversal in a corrective movement is possible. Entry points: Testing the range of 1.14630—1.14372 while looking for reversal signals. Targets: Return to the lower part of the balance zone at 1.15056. Key scenario of the week: Special interest lies in the price reaction to the level of 1.15943. If the current upward movement transitions into a correction stage, approaches to this level will be the most promising for opening short positions in line with the overall bearish trend. Good luck.