Market background
EUR/USD rallied from a high-volume rejection of lower prices and is now reacting toward the breakout area.
VSA observations
- The reaction bars are narrower than the rally bars
- Volume contracts on the latest down bar
- The close is off the low, suggesting reduced supply rather than aggressive selling
Conditional scenarios
Scenario 1
If demand returns above the reaction high, the bar can be treated as a successful no-supply test.
Scenario 2
If spread and volume expand downward, the strength reading is invalidated.
Learning note
Low volume is evidence of absence; the next response shows whether demand can use that absence.