EURUSD Drill Down Where is it Headed? Analysis and Risk

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Drilling Down to Identify the Strong Side of the Forex Market

 

EURUSD Drill Down Where is it Headed? Analysis and Risk

One of the most important decisions in forex trading is identifying the right side of the market to trade. In fact, many traders will tell you that choosing the right side is more than half the battle. If you can consistently position on the strong side of the market, you’re already putting yourself in a better position to succeed.
So, how do you find that strong side? The answer lies in a systematic chart analysis method known as “drilling down,” paired with tools like the Amazing Trader charting algorithm.

 

EURUSD Drill Down Where is it Headed? Analysis and Risk

 

What Is the Strong Side of the Market?

The “strong side” is the side least likely to see follow-through against it. In other words, it’s the side where there are no nearby key stops to trigger reversals or break momentum. When you identify this side, you increase the odds of catching trades that flow with the market rather than fight it.

What Does “Drilling Down” Mean?

Drilling down is a top-down technical analysis approach. You start with longer-term charts—such as the monthly—and work your way down through weekly, daily, and intraday timeframes (e.g., 4-hour, 1-hour, 15-minute) to see if price action aligns across all levels.

This process helps:
• Confirm trends
• Spot key support/resistance levels
• Distinguish retracements from trend continuations

For day traders, this is especially valuable in distinguishing whether a short-term move is just a pullback or a true trend shift.

So EURUSD Drill Down Where is it Headed? Analysis and Risk

EUR/USD Drill Down Analysis (Live Example)

Let’s apply this process to EUR/USD using the Amazing Trader Ladder Strategy and chart pattern analysis.

Monthly Chart
• Trend: Up
• Pattern: 5 consecutive green candles
• This month: A red candle would break the pattern
• Key Level: 1.1343 (would signal outside month if broken)
Takeaway: The monthly chart is not offering much immediate guidance.

EURUSD Drill Down Where is it Headed? Analysis and Risk

Weekly Chart
• Trend: Up
• Pattern: 7 green candles in a row (one exception can be ignored)
• This Week: The pattern was broken, suggesting risk of retracement or consolidation
• Key Level: 1.1065 (still intact)
Takeaway: No immediate threat to the trend, but signs of exhaustion…drill down further.

EURUSD Drill Down Where is it Headed? Analysis and Risk

Daily Chart
• Trend: Still up, but currently retracing
2 Patterns to Watch

1) Amazing Trader Ladder Pattern
• Falling blue ladder rungs indicate momentum is shifting down
• Key Levels:
o Below 1.1750 = downside risk persists while below it
o Above 1.1750 = risk to the downside is negated
o 1.1662 = current support (near double bottom)
o Break below 1.1662 → 1.1580 becomes the next target

2) Magic Levels Pattern
• 5-day sideways range centered around 1.1700 (i.e. 1.17 has traded 5 days I a row)
• This pattern gains strength when prices pivot these key round numbers like 0, 2, 5, 8
• The longer the consolidation, the more powerful the breakout when it happens
• Once the pattern is broken, it often signals a directional; move in the direction of the break
• Watch closely to see if 1.17 pivot becomes either support or resistance

EURUSD Drill Down Where is it Headed? Analysis and Risk

4-Hour Chart
• Key Levels: 1.1662 (support), 1.1750 (resistance)
• Larger stops likely below 1.1662 = the more vulnerable side
• A break of 1.1662 could lead to 1.1580
• If 1.1662 is broken then 1.1714 becomes a key resistance on the AT ladder

Let the Market Tell You the Strong Side

By using a structured drill-down approach, combined with repeatable patterns like the Amazing Trader ladder (and Magic Levels), traders can spot high-probability setups with greater confidence.

If you’re serious about trading with the trend and staying on the strong side, make this process part of your daily preparation. Let the charts align and let the market lead the way.

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EURUSD Drill Down Where is it Headed? Analysis and Risk

 

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