Price trading just below Harmonic Bat support on the Euro...
Weekly view: Following the strong retest of the weekly swap level 1.1096, price rallied higher into weekly supply at 1.1449-1.1278. This has been the most we’ve seen the Euro rally since price began its descent back in May 2014. In spite of this, our long-term bias still remains south and will continue to do so until we see a convincing push above the aforementioned weekly supply area.
Daily view: Yesterday’s daily candle shows that the buyers were clearly in the driving seat during yesterday’s session, rallying the Euro a cool 160 pips into the close 1.1346. Consequent to this, price is now trading within a stone’s throw away from the Harmonic resistance zone (Bat pattern) coming in at 1.1516/1.1376.
4hr view: From this angle, we can see that the EUR/USD rallied during most of the London and New York sessions yesterday, consequently taking out 1.1300 and colliding with 4hr supply coming in at 1.1387-1.1346 (located just below the aforementioned daily Harmonic resistance zone).
Considering the markets overall position on the higher-timeframe picture at the moment (see above), our team is naturally swaying more to the short side today… However, selling at the current 4hr supply area would be a risky trade in our book for the simple reason that it’s positioned just below a psychological round number 1.1400 – it has fakeout written all over it! As such, one could either wait to see if prices do fake higher and attack the 1.1400 number today and wait for a lower timeframe confirmation signal to short, or if a fake higher is not seen, wait for prices to convincingly close below the 1.1300 number, since this would likely free the path south for further downside to at least 1.1200. Selling from the current 4hr supply into 1.1300 could put you in drawdown, or worse at a loss – patience is key here!
Our current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.1400 region [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this level).
Daily view: Yesterday’s daily candle shows that the buyers were clearly in the driving seat during yesterday’s session, rallying the Euro a cool 160 pips into the close 1.1346. Consequent to this, price is now trading within a stone’s throw away from the Harmonic resistance zone (Bat pattern) coming in at 1.1516/1.1376.
4hr view: From this angle, we can see that the EUR/USD rallied during most of the London and New York sessions yesterday, consequently taking out 1.1300 and colliding with 4hr supply coming in at 1.1387-1.1346 (located just below the aforementioned daily Harmonic resistance zone).
Considering the markets overall position on the higher-timeframe picture at the moment (see above), our team is naturally swaying more to the short side today… However, selling at the current 4hr supply area would be a risky trade in our book for the simple reason that it’s positioned just below a psychological round number 1.1400 – it has fakeout written all over it! As such, one could either wait to see if prices do fake higher and attack the 1.1400 number today and wait for a lower timeframe confirmation signal to short, or if a fake higher is not seen, wait for prices to convincingly close below the 1.1300 number, since this would likely free the path south for further downside to at least 1.1200. Selling from the current 4hr supply into 1.1300 could put you in drawdown, or worse at a loss – patience is key here!
Our current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.1400 region [Tentative – confirmation required] (Predicative stop-loss orders seen at: dependent on where one confirms this level).
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