EUR/USD: Technical outlook and review...
Weekly view: The weekly timeframe shows that sellers continue to push price south from the weekly supply area at 1.1532-1.1278, resulting in price now trading within a stone’s throw away from a weekly swap level coming in at 1.1051, and at the same time, wiping out any gains the market had picked up last week. Our long-term bias still remains south on this pair and will continue to do so until we see a convincing push above the current weekly supply area.
Daily view: Monday’s rebound from the daily Harmonic Bat reversal zone at 1.1516/1.1376 (located deep within the aforementioned weekly supply area) extended lower yesterday, forcing price to shake hands with the daily support level seen at 1.1143.
4hr view: The Euro’s recent descent took out several technical areas during its onslaught yesterday. It was only once price met with 4hr demand at 1.1065-1.1125 (positioned just below the aforementioned daily support level) did we see price action stabilize.
The reaction seen from this 4hr demand area during yesterday’s U.S session has so far not given us any reason to consider that buying interest exists here at this point in time. Considering that the market is trading so close to a weekly swap level seen below in green at 1.1051, we feel that this number will act as a magnet to price today and naturally continue driving towards this barrier, which, as you can see converges beautifully with a 4hr trendline extended from the low 1.0519. The green rectangle – placed 10 pips either side of the weekly swap level is where we intend to begin watching for lower timeframe support to hold firm should the market reach this far south today, as buying from this area, in our opinion, is extremely high probability.
Levels to watch/live orders:
• Buys: 1.1034/1.1061 [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this area).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).
Daily view: Monday’s rebound from the daily Harmonic Bat reversal zone at 1.1516/1.1376 (located deep within the aforementioned weekly supply area) extended lower yesterday, forcing price to shake hands with the daily support level seen at 1.1143.
4hr view: The Euro’s recent descent took out several technical areas during its onslaught yesterday. It was only once price met with 4hr demand at 1.1065-1.1125 (positioned just below the aforementioned daily support level) did we see price action stabilize.
The reaction seen from this 4hr demand area during yesterday’s U.S session has so far not given us any reason to consider that buying interest exists here at this point in time. Considering that the market is trading so close to a weekly swap level seen below in green at 1.1051, we feel that this number will act as a magnet to price today and naturally continue driving towards this barrier, which, as you can see converges beautifully with a 4hr trendline extended from the low 1.0519. The green rectangle – placed 10 pips either side of the weekly swap level is where we intend to begin watching for lower timeframe support to hold firm should the market reach this far south today, as buying from this area, in our opinion, is extremely high probability.
Levels to watch/live orders:
• Buys: 1.1034/1.1061 [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this area).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).
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