When we look for "context", then we should look at the recent price action and what it is trying to attempt , and that chart tells us that strong trend reversals has few points to consider and sideways action is totally good idea to short the rally or attempt to break and failures are the other ones.
Strong elongated candle from the lows and it was multi- month low and also it followed no trade location which could mean that smart people are looking to sell rallies in the pair. But the area which is mentioned "Extreme Supply", in the chart is an area where we should look to buy the pair as this sideways action could be a part of accumulating the recent supply from lows. I am short on the pair but only time will tell and my stops are place at 1.0940 area
Price action is very difficult to read sometime but the logic of trading should be right and there should not too much inclusion of indicators or even so many views should be taken, because trading is an approach and till you are not able to accept your strong points and weak points, it become totally impossible to trade any market All the filters should be checked (not all the indicators), such as market sentiment, profile and current demand for the subsequent pairs and then one should start trading the way market tells you to trade.
Price action suggest to short around 1.0910 area and it was good rally to the bottom but still we should look to sell rally till price is below the supply area.
Good luck, let see what happens with the pair !
Brief Explanation of Price Action Correctional bottoms
When we see, correctional bottom in strong trend and liquidation is so heavy that price start "Gravitating" towards the high, and break above it but after that we saw some strong attempts with strong bullish candles, which faded away lately and break below the correction bottom and then another break found new low.
