Weekly gain/loss: + 48 pips
Weekly closing price: 1.1821
Despite the weekly timeframe stamping in a strong-looking selling wick, price failed to generate anything noteworthy to the downside last week. Instead, what we saw was the pair decisively print a close above weekly resistance at 1.1768, which has directly exposed a weekly resistance level coming in at 1.2044 (not seen on the screen).
The daily timeframe initially highlighted both the demand at 1.1650-1.1733 and supply drawn from 1.1870-1.1786. The supply suffered multiple breaks to the upside the week prior, giving the impression that the bulls were heading higher. However, what we failed to see last week was the supply (formed by an overlapping tail/wick that broke the 7/6/2010 low at 1.1876) lurking just above this area at 1.1968-1.1862.
A brief look at recent dealings on the H4 timeframe saw the EUR/USD swallow the 1.18 handle after US inflation data came in slightly lower than expected. Price found refuge around the 1.1830 mark (August’s opening level), and ended the day chalking up a selling wick.
Suggestions: Selling conditions remain somewhat uninviting at the moment. This is due to the 1.18 handle – coupled with the EUR being entrenched within a strong uptrend at the moment and weekly price currently trading above resistance.
On the flip side, we do have the daily supply mentioned above at 1.1968-1.1862 in view, which has already managed to cap upside two weeks back. Still, the move from this area was, as you can see, quickly stopped by the daily demand at 1.1650-1.1733, which we’re sure you’ll agree, is not the most attractive in terms of its shape and momentum, thus further supporting a weaker sell side in this market.
Overall, our team remains biased to the upside, but at the same time still slightly weary of the daily supply at 1.1968-1.1862! To that end, we would like to see the bulls charge into this zone this week and make their presence felt, before we consider buying this market. A decisive H4 close above the 1.19 mark would be ideal here.
Data points to consider: No high-impacting events scheduled on the docket today.
Levels to watch/live orders:
• Buys: Watching for a decisive close above 1.19 before we consider buying.
• Sells: Flat (stop loss: N/A).
Weekly closing price: 1.1821
Despite the weekly timeframe stamping in a strong-looking selling wick, price failed to generate anything noteworthy to the downside last week. Instead, what we saw was the pair decisively print a close above weekly resistance at 1.1768, which has directly exposed a weekly resistance level coming in at 1.2044 (not seen on the screen).
The daily timeframe initially highlighted both the demand at 1.1650-1.1733 and supply drawn from 1.1870-1.1786. The supply suffered multiple breaks to the upside the week prior, giving the impression that the bulls were heading higher. However, what we failed to see last week was the supply (formed by an overlapping tail/wick that broke the 7/6/2010 low at 1.1876) lurking just above this area at 1.1968-1.1862.
A brief look at recent dealings on the H4 timeframe saw the EUR/USD swallow the 1.18 handle after US inflation data came in slightly lower than expected. Price found refuge around the 1.1830 mark (August’s opening level), and ended the day chalking up a selling wick.
Suggestions: Selling conditions remain somewhat uninviting at the moment. This is due to the 1.18 handle – coupled with the EUR being entrenched within a strong uptrend at the moment and weekly price currently trading above resistance.
On the flip side, we do have the daily supply mentioned above at 1.1968-1.1862 in view, which has already managed to cap upside two weeks back. Still, the move from this area was, as you can see, quickly stopped by the daily demand at 1.1650-1.1733, which we’re sure you’ll agree, is not the most attractive in terms of its shape and momentum, thus further supporting a weaker sell side in this market.
Overall, our team remains biased to the upside, but at the same time still slightly weary of the daily supply at 1.1968-1.1862! To that end, we would like to see the bulls charge into this zone this week and make their presence felt, before we consider buying this market. A decisive H4 close above the 1.19 mark would be ideal here.
Data points to consider: No high-impacting events scheduled on the docket today.
Levels to watch/live orders:
• Buys: Watching for a decisive close above 1.19 before we consider buying.
• Sells: Flat (stop loss: N/A).
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