EUR/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
As we head into the early stages of April, March left behind a long-legged doji indecision candle, with extremes crossing paths with heavyweight demand-turned supply at 1.1857/1.1352 and demand at 1.0488/1.0912.
To a degree, we’re now rangebound between the two aforementioned price structures; notably, however, April’s candle is testing the top edge of 1.0488/1.0912.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Europe’s single currency recorded its fourth consecutive losing day against the greenback Thursday, consequently extending downside south of the 200-day SMA at 1.1074, as buyers lost their flavour around demand at 1.0925/1.0864.
Sustained downside lays the foundation to moves towards demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
Price action on the H4 timeframe, thanks to yesterday’s decline, formed the D-leg of an AB=CD bullish configuration (orange) at 1.0815, combined with a 61.8% Fib retracement level at 1.0826, shaded closely by a 161.8% Fib ext. level at 1.0800. By and of itself, this could spark a wave of buying today, targeting the 38.2% Fib retracement at 1.0943, a traditional take-profit target out of AB=CD completions, followed by the 61.8% Fib retracement at 1.1022.
H1 timeframe:
According to the US Department of labour, in the week ending March 28, the advance figure for seasonally adjusted initial claims was 6,648,000, an increase of 3,341,000 from the previous week's revised level. This marks the highest level of seasonally adjusted initial claims in the history of the seasonally adjusted series. Modest USD selling was felt following the release, though USD bids swiftly recovered with the benchmark US dollar index extending its weekly recovery north of 100.00.
Technical development on the H1 timeframe, similar to the H4 chart, also put in an AB=CD bullish pattern (orange) from a high of 1.1037, which, as you can see, is rebounding price, as we write. Positioned south of H1 channel support (1.0926) and the 1.08 handle, the next port of call to the upside can be seen around demand-turned supply at 1.0889/1.0937, encasing the 1.09 handle.
Structures of Interest:
The combination of two AB=CD bullish patterns is likely to excite buyers today, with the possibility of reaching the 38.2% H1 Fib retracement level at 1.0906 on the H1 timeframe, and maybe the 38.2% Fib retracement at 1.0943 on the H4.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
As we head into the early stages of April, March left behind a long-legged doji indecision candle, with extremes crossing paths with heavyweight demand-turned supply at 1.1857/1.1352 and demand at 1.0488/1.0912.
To a degree, we’re now rangebound between the two aforementioned price structures; notably, however, April’s candle is testing the top edge of 1.0488/1.0912.
The primary downtrend remains in motion, trading lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
Europe’s single currency recorded its fourth consecutive losing day against the greenback Thursday, consequently extending downside south of the 200-day SMA at 1.1074, as buyers lost their flavour around demand at 1.0925/1.0864.
Sustained downside lays the foundation to moves towards demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
Price action on the H4 timeframe, thanks to yesterday’s decline, formed the D-leg of an AB=CD bullish configuration (orange) at 1.0815, combined with a 61.8% Fib retracement level at 1.0826, shaded closely by a 161.8% Fib ext. level at 1.0800. By and of itself, this could spark a wave of buying today, targeting the 38.2% Fib retracement at 1.0943, a traditional take-profit target out of AB=CD completions, followed by the 61.8% Fib retracement at 1.1022.
H1 timeframe:
According to the US Department of labour, in the week ending March 28, the advance figure for seasonally adjusted initial claims was 6,648,000, an increase of 3,341,000 from the previous week's revised level. This marks the highest level of seasonally adjusted initial claims in the history of the seasonally adjusted series. Modest USD selling was felt following the release, though USD bids swiftly recovered with the benchmark US dollar index extending its weekly recovery north of 100.00.
Technical development on the H1 timeframe, similar to the H4 chart, also put in an AB=CD bullish pattern (orange) from a high of 1.1037, which, as you can see, is rebounding price, as we write. Positioned south of H1 channel support (1.0926) and the 1.08 handle, the next port of call to the upside can be seen around demand-turned supply at 1.0889/1.0937, encasing the 1.09 handle.
Structures of Interest:
The combination of two AB=CD bullish patterns is likely to excite buyers today, with the possibility of reaching the 38.2% H1 Fib retracement level at 1.0906 on the H1 timeframe, and maybe the 38.2% Fib retracement at 1.0943 on the H4.