As can be seen from the H4 timeframe this morning, the shared currency seized the 1.18 handle in early European trade. This consequently cleared bids and allowed price to shake hands with October’s opening level at 1.1788 and a nearby broken Quasimodo line at 1.1779.
Over on the bigger picture, the pair continues to hold ground above weekly support at 1.1714. Daily price on the other hand, remains trading in a bearish posture after crossing swords with resistance pegged at 1.1878. This is the third consecutive bearish candle printed thus far. As long as the sellers remain in control from this angle, the pair could revisit demand pegged at 1.1612-1.1684 sometime this week (positioned below the aforementioned weekly support).
Suggestions: Despite 1.18 looking as though it’s hanging on by a thread, the said H4 broken Quasimodo level and monthly opening line are still very much in one piece. So, shorting the euro right now is not something we would label high probability, especially given that you’d also be selling into potential weekly flow as well. A break below the current H4 structures opens the door down to the H4 mid-level support at 1.1750 that is seen intersecting with a demand base marked with a black arrow at 1.1739-1.1749. Before sellers get excited, this only frees up 30 pips of space which is not really ideal selling conditions considering risk/reward. Unfortunately, a buy is still just as awkward given the 1.18 resistance level, nearby August opening level at 1.1830 and noted daily resistance.
So with that, the desk will remain flat for the time being.
Over on the bigger picture, the pair continues to hold ground above weekly support at 1.1714. Daily price on the other hand, remains trading in a bearish posture after crossing swords with resistance pegged at 1.1878. This is the third consecutive bearish candle printed thus far. As long as the sellers remain in control from this angle, the pair could revisit demand pegged at 1.1612-1.1684 sometime this week (positioned below the aforementioned weekly support).
Suggestions: Despite 1.18 looking as though it’s hanging on by a thread, the said H4 broken Quasimodo level and monthly opening line are still very much in one piece. So, shorting the euro right now is not something we would label high probability, especially given that you’d also be selling into potential weekly flow as well. A break below the current H4 structures opens the door down to the H4 mid-level support at 1.1750 that is seen intersecting with a demand base marked with a black arrow at 1.1739-1.1749. Before sellers get excited, this only frees up 30 pips of space which is not really ideal selling conditions considering risk/reward. Unfortunately, a buy is still just as awkward given the 1.18 resistance level, nearby August opening level at 1.1830 and noted daily resistance.
So with that, the desk will remain flat for the time being.
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