Look at how USD tapped each and every one of my lines! I've lost a little in 15-pip increments as the dealer has continued to swing higher and higher into the user 60-pip zone, but I'm still optimistic about a reversal. Notice the upwards facing pin bars. I've said this before and I'll say it again, the dealer will flash their equity in order to reach into pools of liquidity, be it sell/buy limit orders, or zones of stop loss orders. This sort of behavior also induces panic trading, as retailers see solid green or red candlesticks that, for the moment, appear as the classic textbook 'momentum', forcing their hand into the market (at the worst possible time, in the wrong direction).

I'm excited to see how the oncoming US dealer will work the rest of the trade day. The way I see it, Asia saw a rally away from yesterday's low, after violating the low of the day put in on Friday. As we all know, sell limit and buy stop loss orders are commonly placed there, and it would make sense for a dealer to work the low, activate sell limits, and pull back to hit their stops and release liquidity back into the market. If a correction is coming, they would have already cleared the pressure of breakout sellers and won't have to reward as many traders.

Not only that, but Europe has seen a gradual pumping upwards, against the sentiment of Friday. Momentum to the upside begins to appear as the dealer begins to swing higher and higher, flashing equity to the upside (pin bars). Leading up to the US open, the Europe dealer may have developed a net short position against its longs, as the US dealer corrects price against buyers.