H4 three-drive pattern close to completion, traders...Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
The month of May, as you can see, recovered off worst levels out of demand from 1.0488/1.0912 and closed firm.
June extended gains to highs at 1.1422 and finished adding 1.19%, despite running into opposition at the lower ledge of nearby supply from 1.1857/1.1352 mid-month (unites with long-term trendline resistance ).
July is currently seen toying with the aforesaid supply.
With reference to the primary trend, the pair has exhibited clear lower peaks and troughs since 2008.
Daily timeframe:
Partially altered from previous analysis -
The month of June observed EUR/USD address a potential reversal zone (PRZ), derived from a harmonic bearish bat pattern. The base is comprised of an 88.6% Fib level at 1.1395, a 161.8% BC projection at 1.1410 and a 161.8% Fib ext. level at 1.1462 (red oval). It’s typical, in the case of bearish formations, to see traders sell PRZs and place protective stop-loss orders above the X point (1.1495). Common take-profit targets fall in at the 38.2% and 61.8% Fib levels (of legs A/D) at 1.1106 and 1.0926, respectively.
As you can see, buyers appear to be gathering traction, leaving sellers in a precarious situation as the Fib targets have yet to be met.
H4 timeframe:
Buyers and sellers exchanged words at channel support (prior resistance - 1.1422) in recent activity, leading to the pair advancing and crossing paths with resistance at 1.1348.
Price action is interesting on this timeframe, as space beyond 1.1348 underscores supply at 1.1415/1.1376, which happens to align with a potential three-drive pattern at the 127.2% Fib ext. level from 1.1383.
H1 timeframe:
US trade witnessed increased demand for euros as the DXY split 96.50 to the downside. EUR/USD on the H1 timeframe brushed aside 1.13, as well as supply at 1.1316/1.1306, which, as you can see, was later retested as demand before connecting with 1.1350 resistance. While current action is feasting on levels just south of the latter, a violation of the level provides a basis to approach the 1.14 level.
Structures of Interest:
1.1350 resistance on the H1 shares the same space with H4 resistance at 1.1348.
Ultimately, though, H4 price likely wants to bring in supply at 1.1415/1.1376, and its three-drive pattern at 1.1383.
This indicates a possible break above 1.1350 today and test of the aforesaid H4 supply, which may, owing to the area’s confluence, see traders pursue bearish strategies.
