Technical developments on EUR/USD shifts to a bullish bias
EUR/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
The month of February witnessed EUR/USD revisit the upper limit of demand at 1.0488/1.0912 – a noteworthy area given the momentum derived from its base – and pencil in an appealing (bullish) hammer candlestick pattern.
In the early stages of March, as you can see, the market manoeuvred the pair into demand-turned supply at 1.1857/1.1352. However, leaving long-term trendline resistance (1.6038) unchallenged, price has reversed gains and revisited demand mentioned above at 1.0488/1.0912.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Outlook partially altered from previous analysis -
Following a precipitous decline from supply at 1.1540/1.1486, an area located within the confines of the said monthly demand-turned supply at 1.1857/1.1352, the 200-day SMA gave way in recent trading. This rolled price action to near-four-week lows at 1.0801, stationed a few points ahead of demand coming in at 1.0680/1.0781, which happens to reside within the current monthly demand zone.
What’s also notable from a technical perspective is the RSI indicator recently dethroned the 50.00 value, suggesting we’re heading for oversold territory.
H4 timeframe:
Technical developments on the H4 timeframe witnessed a retest at the underside of demand-turned supply from 1.1038/1.1072. Renewed downside kicked in early Europe, registering fresh weekly lows and testing an interesting combination of support. Comprised of a deep 88.6% Fib retracement at 1.0857, a trendline resistance-turned support (1.1172) and channel support (1.1055), H4 action reversed in solid form, closing at highs.
H1 timeframe:
Intraday flow observed the shared currency succumb to dollar upside Wednesday, largely disregarding ECB headlines.
From a technical standpoint, price staged a healthy recovery off a 161.8% Fib ext. level north of 1.08 at 1.0808 and since reclaimed 1.09+ status. This potentially paves the way for further gains today towards clear-cut resistance at 1.0954, with a break exposing the widely watched 1.10 figure and demand-turned supply at 1.1044/1.1024: the origin of the most recent downswing.
Structures of Interest:
Monthly price seen grasping the top edge of familiar demand at 1.0488/1.0912, daily price turning higher just north of demand at 1.0680/1.0781, H4 price rebounding from a combination of support around 1.0857 and H1 crossing 1.09 to the upside will likely be perceived as a bullish market today.
A retest at 1.09 is likely a watched setup, with 1.0954 (H1 resistance) pencilled in as the initial target, followed by 1.10.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
The month of February witnessed EUR/USD revisit the upper limit of demand at 1.0488/1.0912 – a noteworthy area given the momentum derived from its base – and pencil in an appealing (bullish) hammer candlestick pattern.
In the early stages of March, as you can see, the market manoeuvred the pair into demand-turned supply at 1.1857/1.1352. However, leaving long-term trendline resistance (1.6038) unchallenged, price has reversed gains and revisited demand mentioned above at 1.0488/1.0912.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Outlook partially altered from previous analysis -
Following a precipitous decline from supply at 1.1540/1.1486, an area located within the confines of the said monthly demand-turned supply at 1.1857/1.1352, the 200-day SMA gave way in recent trading. This rolled price action to near-four-week lows at 1.0801, stationed a few points ahead of demand coming in at 1.0680/1.0781, which happens to reside within the current monthly demand zone.
What’s also notable from a technical perspective is the RSI indicator recently dethroned the 50.00 value, suggesting we’re heading for oversold territory.
H4 timeframe:
Technical developments on the H4 timeframe witnessed a retest at the underside of demand-turned supply from 1.1038/1.1072. Renewed downside kicked in early Europe, registering fresh weekly lows and testing an interesting combination of support. Comprised of a deep 88.6% Fib retracement at 1.0857, a trendline resistance-turned support (1.1172) and channel support (1.1055), H4 action reversed in solid form, closing at highs.
H1 timeframe:
Intraday flow observed the shared currency succumb to dollar upside Wednesday, largely disregarding ECB headlines.
From a technical standpoint, price staged a healthy recovery off a 161.8% Fib ext. level north of 1.08 at 1.0808 and since reclaimed 1.09+ status. This potentially paves the way for further gains today towards clear-cut resistance at 1.0954, with a break exposing the widely watched 1.10 figure and demand-turned supply at 1.1044/1.1024: the origin of the most recent downswing.
Structures of Interest:
Monthly price seen grasping the top edge of familiar demand at 1.0488/1.0912, daily price turning higher just north of demand at 1.0680/1.0781, H4 price rebounding from a combination of support around 1.0857 and H1 crossing 1.09 to the upside will likely be perceived as a bullish market today.
A retest at 1.09 is likely a watched setup, with 1.0954 (H1 resistance) pencilled in as the initial target, followed by 1.10.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.