Interesting P.A being seen on the Eur
The bullish pulse continues to beat in the EUR/USD market as price stamped in yet another 100+ pip gain yesterday. Early on in European trade, market action bounced nicely from a small H4 demand at 1.1065-1.1080 (an area we warned may be troublesome for shorts) and advanced up to psychological resistance 1.1200 where price is currently stalling.
The way we are seeing things right now is the weekly is presently trading within shouting distance of supply drawn from 1.1533-1.1278. Meanwhile, down on the daily timeframe, a very clear Harmonic AB=CD bear pattern is forming. Our sell zone here is fixed between the 127.2% Fibonacci level at 1.1197 and the 161.8% at 1.1387. Clearly this is a huge sell zone, and not one that we’d be comfortable trading due to the large stop-loss required.
On that account, today’s spotlight will firmly be focused on the daily supply zone painted above at 1.1385-1.1332 (the upper area of our Harmonic sell zone which also sits within the above said weekly supply) for sells. On the H4 there is also a corresponding resistance level coming in at 1.1349 within this daily supply, but for the best part our focus will be on the daily chart today. That being the case, we are placing a pending sell order at 1.1330 and a stop just above our daily zone at 1.1395. As of now, the first take-profit level can be seen on the daily timeframe at 1.1122 – a recently broken resistance-turned support.
The way we are seeing things right now is the weekly is presently trading within shouting distance of supply drawn from 1.1533-1.1278. Meanwhile, down on the daily timeframe, a very clear Harmonic AB=CD bear pattern is forming. Our sell zone here is fixed between the 127.2% Fibonacci level at 1.1197 and the 161.8% at 1.1387. Clearly this is a huge sell zone, and not one that we’d be comfortable trading due to the large stop-loss required.
On that account, today’s spotlight will firmly be focused on the daily supply zone painted above at 1.1385-1.1332 (the upper area of our Harmonic sell zone which also sits within the above said weekly supply) for sells. On the H4 there is also a corresponding resistance level coming in at 1.1349 within this daily supply, but for the best part our focus will be on the daily chart today. That being the case, we are placing a pending sell order at 1.1330 and a stop just above our daily zone at 1.1395. As of now, the first take-profit level can be seen on the daily timeframe at 1.1122 – a recently broken resistance-turned support.
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