EUR/USD: Technical outlook and review.
Weekly Timeframe: For the past four weeks now price has been trading in between a major combined weekly demand/Quasimodo support area at 1.22403-1.24420/1.22866, and a weekly support swap level coming in at 1.25816.
Daily Timeframe: The daily timeframe shows that price is ranging between smaller daily supply and demand zones (1.26386-1.25459/1.22877-1.23809) within the aforementioned larger weekly areas. A breakout above would likely confirm buying strength from the aforementioned weekly demand/Quasimodo support area, and in the same way, a breakout below would likely inform us that this weekly area is vulnerable, and strength is being seen from the aforementioned weekly support swap level.
4hr Timeframe: The 4hr timeframe shows that the break seen above the resistance channel on Monday was clearly a 2-bar reversal pattern. Since our previous analysis, the Euro dropped like a rock. The 1.24422 level gave way without a fight, as did 1.24.
That being the case, if further selling continues to be seen throughout today’s sessions, it is very likely prices will hit a combined 4hr demand/round number area coming in at 1.22942-1.23491/1.23 (located within both the weekly and daily demand areas – see above). We’re itching to set a pending buy order here, but in doing so risk/reward considerations would argue that price is too close to potential resistance at 1.24, so we’ll have to wait for lower-timeframe confirmation around the 1.23516 area.
On a side note, this level is extra attractive due to the support level seen marked with two green arrows at around 1.23638. This level no doubt contains tons of buy orders with sell stops set just below at 123544, which gives pro money all the more reason to break this level into the 4hr demand below, as this will give them the added liquidity in the form of sell stops for their buys to rally prices higher.
Buy/sell levels:
• Buy orders: 1.23516 [Tentative] (Predicative stop-loss orders seen at: 1.22893).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: The daily timeframe shows that price is ranging between smaller daily supply and demand zones (1.26386-1.25459/1.22877-1.23809) within the aforementioned larger weekly areas. A breakout above would likely confirm buying strength from the aforementioned weekly demand/Quasimodo support area, and in the same way, a breakout below would likely inform us that this weekly area is vulnerable, and strength is being seen from the aforementioned weekly support swap level.
4hr Timeframe: The 4hr timeframe shows that the break seen above the resistance channel on Monday was clearly a 2-bar reversal pattern. Since our previous analysis, the Euro dropped like a rock. The 1.24422 level gave way without a fight, as did 1.24.
That being the case, if further selling continues to be seen throughout today’s sessions, it is very likely prices will hit a combined 4hr demand/round number area coming in at 1.22942-1.23491/1.23 (located within both the weekly and daily demand areas – see above). We’re itching to set a pending buy order here, but in doing so risk/reward considerations would argue that price is too close to potential resistance at 1.24, so we’ll have to wait for lower-timeframe confirmation around the 1.23516 area.
On a side note, this level is extra attractive due to the support level seen marked with two green arrows at around 1.23638. This level no doubt contains tons of buy orders with sell stops set just below at 123544, which gives pro money all the more reason to break this level into the 4hr demand below, as this will give them the added liquidity in the form of sell stops for their buys to rally prices higher.
Buy/sell levels:
• Buy orders: 1.23516 [Tentative] (Predicative stop-loss orders seen at: 1.22893).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
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