Our take on the Euro's recent movements
Weekly view – From the weekly timeframe, we can see that price is now crossing swords with the weekly supply area coming in at 1.1532-1.1278 again. This supply zone is a very significant hurdle in our opinion since if there is a sustained break above this area, our long-term bias on this pair will very likely shift north.
Daily view: Following Monday’s rebound from the daily swap area marked in yellow at 1.1051-1.1000; price went on to print an indecision candle during yesterday’s session. A small advance from this point today will likely see the Euro connect with a nearby daily Quasimodo cluster zone coming in at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area).
4hr view: The 4hr timeframe shows that price faked above the round number 1.1300 into an area of 4hr supply at 1.1397-1.1365 during the early hours of the European open. The sell off from here continued into London and saw price drop to a low of 1.1212, which, as you can see, provided enough support for active buyers to enter the market going into the U.S session.
With the weekly timeframe showing price trading at supply, and the daily timeframe loitering only a few pips below a daily Quasimodo cluster zone (see above), buying this market, unless for a very small intraday trade, is out of the question for us.
As for selling, we will not be interested in shorting this market until price at least enters into the yellow zone (1.1411/1.1378) – an even better area, however, would be the 4hr Quasimodo resistance base seen just above it in green at 1.1443-1.1411. The reason for selecting the aforementioned 4hr areas is simply because these zones are located not only around the aforementioned daily Quasimodo cluster area, but are also sitting deep within the aforementioned weekly supply zone – a fantastic area to be looking for confirmed shorts into the market!
Levels to watch/live orders:
• Buys: Flat (Predicative stop-loss orders seen at: N/A).
• Sells: 1.1443/1.1378 [Tentative – confirmation required] (Stop-loss: 1.1449).
Daily view: Following Monday’s rebound from the daily swap area marked in yellow at 1.1051-1.1000; price went on to print an indecision candle during yesterday’s session. A small advance from this point today will likely see the Euro connect with a nearby daily Quasimodo cluster zone coming in at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area).
4hr view: The 4hr timeframe shows that price faked above the round number 1.1300 into an area of 4hr supply at 1.1397-1.1365 during the early hours of the European open. The sell off from here continued into London and saw price drop to a low of 1.1212, which, as you can see, provided enough support for active buyers to enter the market going into the U.S session.
With the weekly timeframe showing price trading at supply, and the daily timeframe loitering only a few pips below a daily Quasimodo cluster zone (see above), buying this market, unless for a very small intraday trade, is out of the question for us.
As for selling, we will not be interested in shorting this market until price at least enters into the yellow zone (1.1411/1.1378) – an even better area, however, would be the 4hr Quasimodo resistance base seen just above it in green at 1.1443-1.1411. The reason for selecting the aforementioned 4hr areas is simply because these zones are located not only around the aforementioned daily Quasimodo cluster area, but are also sitting deep within the aforementioned weekly supply zone – a fantastic area to be looking for confirmed shorts into the market!
Levels to watch/live orders:
• Buys: Flat (Predicative stop-loss orders seen at: N/A).
• Sells: 1.1443/1.1378 [Tentative – confirmation required] (Stop-loss: 1.1449).
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