Pending sell order set at 1.3162 – strong confluence...
The EUR outperformed on Tuesday, reaching highs of 1.1322 by the day’s end. Broad US dollar weakness aided this recent move pushing the US dollar index to lows of 94.43. However, following a poor US CPI reading, the EUR rotated from session highs to touch base with the H4 mid-way support at 1.1250 going into the close. Now, given that price is effectively lodged between 1.13 and 1.1250 at the moment, where does our team stand in the bigger picture?
Over on the weekly chart, price recently connected with a major area of weekly resistance coming in at 1.1533-1.1278. This zone has managed to cap upside in this market since May 2015, so the sellers could make an appearance here! Looking down to the daily chart, nevertheless, there appears to be room for the pair to extend higher towards daily supply drawn from 1.1446-1.1369, which merges with a daily trendline resistance extended from the low 1.0821.
Our suggestions: Despite weekly action now kissing the underside of a weekly resistance area, we feel the unit may want to pop higher before rotating south. Ultimately, we have set a pending sell order at 1.1362, with a stop above the high 1.1427. Building a case for entry we have the following:
• H4 Quasimodo resistance at 1.1382.
• Nice-looking H4 harmonic bearish Bat pattern which shows completion around the 1.1367ish range (H4 88.6% Fib resistance/H4 161.8% Fib extension).
• Psychological resistance at 1.14.
• Daily supply area at 1.1446-1.1369 which encapsulates the H4 Quasimodo sell line.
• Daily trendline resistance which fuses beautifully with the H4 Quasimodo sell line.
• And finally let’s not forget that all of the above is housed within the aforementioned weekly resistance area!
Over on the weekly chart, price recently connected with a major area of weekly resistance coming in at 1.1533-1.1278. This zone has managed to cap upside in this market since May 2015, so the sellers could make an appearance here! Looking down to the daily chart, nevertheless, there appears to be room for the pair to extend higher towards daily supply drawn from 1.1446-1.1369, which merges with a daily trendline resistance extended from the low 1.0821.
Our suggestions: Despite weekly action now kissing the underside of a weekly resistance area, we feel the unit may want to pop higher before rotating south. Ultimately, we have set a pending sell order at 1.1362, with a stop above the high 1.1427. Building a case for entry we have the following:
• H4 Quasimodo resistance at 1.1382.
• Nice-looking H4 harmonic bearish Bat pattern which shows completion around the 1.1367ish range (H4 88.6% Fib resistance/H4 161.8% Fib extension).
• Psychological resistance at 1.14.
• Daily supply area at 1.1446-1.1369 which encapsulates the H4 Quasimodo sell line.
• Daily trendline resistance which fuses beautifully with the H4 Quasimodo sell line.
• And finally let’s not forget that all of the above is housed within the aforementioned weekly resistance area!
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.