Further buying on EUR/USD? Daily hammer candlestick signal seen.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
In the early stages of March, price manoeuvred EUR/USD into a heavyweight demand-turned supply zone at 1.1857/1.1352. Leaving long-term trendline resistance (1.6038) unopposed, however, the pair reversed gains and burrowed into demand at 1.0488/1.0912.
The recent recovery, nevertheless, reclaimed monthly losses, trading pretty much unchanged as we head into April, formed in the mould of a long-legged doji indecision monthly candle.
To a degree, we’re now rangebound between the two aforementioned price structures.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Shaped by way of a hammer candlestick pattern – candlestick traders consider this a bullish signal – a point off demand at 1.0925/1.0864, Tuesday’s close could see Wednesday hand the baton to bulls.
Opposition steps in as the 200-day SMA value at 1.1079, with a break revealing a reasonably free reign to supply
derived from 1.1239/1.1179 that merges closely with a trendline formation (1.0879).
H4 timeframe:
As underlined in Tuesday’s analysis, research highlighted a small demand, the decision point to break 1.1045, at 1.0889/1.0937 (glued to the top edge of daily demand at 1.0925/1.0864), as a point of interest. This was an area of interest due to sell-stop liquidity beneath Friday’s low. As you can see, price rebounded nicely from the said demand mid-way through the London session, by way of a hammer candlestick formation.
To the upside, aside from Friday’s high at 1.1147, supply at 1.1336/1.1272 is exposed, intersecting with a 78.6% Fib retracement at 1.1310. Supply around 1.1210ish appears fragile (arc pattern), with the majority of orders consumed.
H1 timeframe:
The rebound from H4 demand underscored above at 1.0889/1.0937 made its debut yesterday, bolstered by a sell-off in the US dollar index, a shade off the 100.00 handle. EUR upside overthrew 1.10, despite an attempt to hold in early US hours, and the 100-period SMA, with eyes firmly set on 1.1050 and 1.11 today. Limited supply is evident to the left of current price until 1.1255/1.1198 (note this area is tied to the upper edge of daily supply at 1.1239/1.1179).
On the data front, Chicago PMI dropped to 47.8 in March vs. February’s 49.0 reading, though beat consensus at 44.1. In addition, the US Conference Board Consumer Confidence Index declined to 120.0 (1985=100), down from 132.6 in February, but outperformed consensus at 115.1. Both metrics failed to spark much impetus.
Structures of Interest:
The rebound from H4 demand at 1.0889/1.0937 reflects a bullish climate as we head into Asia Pac hours today.
The daily hammer candlestick formation, coupled with a potential retest at 1.10, a widely watched key figure, could encourage another wave of upside today, with 1.1050 sited as the initial target, followed by the 200-day SMA at 1.1079 and then the 1.11 handle.
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
In the early stages of March, price manoeuvred EUR/USD into a heavyweight demand-turned supply zone at 1.1857/1.1352. Leaving long-term trendline resistance (1.6038) unopposed, however, the pair reversed gains and burrowed into demand at 1.0488/1.0912.
The recent recovery, nevertheless, reclaimed monthly losses, trading pretty much unchanged as we head into April, formed in the mould of a long-legged doji indecision monthly candle.
To a degree, we’re now rangebound between the two aforementioned price structures.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Shaped by way of a hammer candlestick pattern – candlestick traders consider this a bullish signal – a point off demand at 1.0925/1.0864, Tuesday’s close could see Wednesday hand the baton to bulls.
Opposition steps in as the 200-day SMA value at 1.1079, with a break revealing a reasonably free reign to supply
derived from 1.1239/1.1179 that merges closely with a trendline formation (1.0879).
H4 timeframe:
As underlined in Tuesday’s analysis, research highlighted a small demand, the decision point to break 1.1045, at 1.0889/1.0937 (glued to the top edge of daily demand at 1.0925/1.0864), as a point of interest. This was an area of interest due to sell-stop liquidity beneath Friday’s low. As you can see, price rebounded nicely from the said demand mid-way through the London session, by way of a hammer candlestick formation.
To the upside, aside from Friday’s high at 1.1147, supply at 1.1336/1.1272 is exposed, intersecting with a 78.6% Fib retracement at 1.1310. Supply around 1.1210ish appears fragile (arc pattern), with the majority of orders consumed.
H1 timeframe:
The rebound from H4 demand underscored above at 1.0889/1.0937 made its debut yesterday, bolstered by a sell-off in the US dollar index, a shade off the 100.00 handle. EUR upside overthrew 1.10, despite an attempt to hold in early US hours, and the 100-period SMA, with eyes firmly set on 1.1050 and 1.11 today. Limited supply is evident to the left of current price until 1.1255/1.1198 (note this area is tied to the upper edge of daily supply at 1.1239/1.1179).
On the data front, Chicago PMI dropped to 47.8 in March vs. February’s 49.0 reading, though beat consensus at 44.1. In addition, the US Conference Board Consumer Confidence Index declined to 120.0 (1985=100), down from 132.6 in February, but outperformed consensus at 115.1. Both metrics failed to spark much impetus.
Structures of Interest:
The rebound from H4 demand at 1.0889/1.0937 reflects a bullish climate as we head into Asia Pac hours today.
The daily hammer candlestick formation, coupled with a potential retest at 1.10, a widely watched key figure, could encourage another wave of upside today, with 1.1050 sited as the initial target, followed by the 200-day SMA at 1.1079 and then the 1.11 handle.
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