Entirely engulfing Monday’s gains, the shared currency took to the downside on Tuesday from the green zone sited on the H4 timeframe at 1.1734/1.17 (comprised of June’s opening level at 1.1705, a 61.8% H4 Fib resistance value at 1.1721 and a H4 resistance area at 1.1710-1.1734). What sealed the deal for us regarding this zone, though, was the fact that it houses the lower edge of the weekly resistance area within at 1.1717-1.1862. Well done to any of our readers who managed to take advantage of this trade, as price is nearing its first take-profit zone: H4 support at 1.1627.
Areas of consideration:
Although 1.1627 is the initial target, the team has noted to remain cognizant of the bigger picture as we could be in for much lower levels! Not only do we have weekly price responding to the lower edge of its resistance area, which shows room to press as far south as the weekly trend line support (taken from the low 1.0340), we also see there is scope for further selling on the daily timeframe down to daily support coming in at 1.1574.
For folks that remain short, reducing risk to breakeven and taking partial profits at H4 support 1.1627 is a reasonable plan. The next port of call beyond 1.1627 falls in at the 1.16 handle, followed then by daily support at 1.1574. By this point, it may be an idea to have the majority of your position closed.
Today’s data points: EUR M3 Money supply y/y; US durable goods orders m/m; FOMC member Quarles speaks.
Areas of consideration:
Although 1.1627 is the initial target, the team has noted to remain cognizant of the bigger picture as we could be in for much lower levels! Not only do we have weekly price responding to the lower edge of its resistance area, which shows room to press as far south as the weekly trend line support (taken from the low 1.0340), we also see there is scope for further selling on the daily timeframe down to daily support coming in at 1.1574.
For folks that remain short, reducing risk to breakeven and taking partial profits at H4 support 1.1627 is a reasonable plan. The next port of call beyond 1.1627 falls in at the 1.16 handle, followed then by daily support at 1.1574. By this point, it may be an idea to have the majority of your position closed.
Today’s data points: EUR M3 Money supply y/y; US durable goods orders m/m; FOMC member Quarles speaks.
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