Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) remain in view, with the latter so far prompting a reasonably attractive upper shadow this month.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008. Consequently, this places 1.1904/1.2235 in a vulnerable position.
Daily timeframe:
Partially altered from previous analysis –
Following last Tuesday’s retest at the 200-day simple moving average from 1.2683, the second half of the week took the currency pair to demand at 1.2192/1.2361, which, as you can see, held on Monday. This is an area not only fastened to the top edge of monthly support, it is also considered the decision point to break 1.2647 (April 14 high).
H4 timeframe:
Demand at 1.2304/1.2343, situated within the walls of daily demand underlined above at 1.2192/1.2361, also held on Monday, with traders now watching supply at 1.2476/1.2526 (prior demand), which intersects with trendline support (1.2075 – prior support).
H1 timeframe:
After retesting 1.24, albeit probing lows at 1.2380, as we transitioned into US trade Monday, candle action tested the resolve of offers at 1.2450.
Resistance above 1.2450 can be located at 1.25, intersecting with trendline resistance (1.2813).
Indicator-based traders will also note the RSI value fast approaching overbought territory.
Structures of Interest:
The point at which 1.25 and H1 trendline resistance merge (red arrow) is likely to be a resistance of interest for intraday sellers today. This combination also benefits from converging with H4 supply at 1.2476/1.2526 and H4 trendline resistance.
Despite the above confluence, traders are also urged to remain aware of where we’re trading from on the daily timeframe: demand.
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
Support at 1.1904/1.2235 and long-term trendline resistance (1.7191) remain in view, with the latter so far prompting a reasonably attractive upper shadow this month.
Concerning the primary trend, lower peaks and troughs have decorated the monthly chart since early 2008. Consequently, this places 1.1904/1.2235 in a vulnerable position.
Daily timeframe:
Partially altered from previous analysis –
Following last Tuesday’s retest at the 200-day simple moving average from 1.2683, the second half of the week took the currency pair to demand at 1.2192/1.2361, which, as you can see, held on Monday. This is an area not only fastened to the top edge of monthly support, it is also considered the decision point to break 1.2647 (April 14 high).
H4 timeframe:
Demand at 1.2304/1.2343, situated within the walls of daily demand underlined above at 1.2192/1.2361, also held on Monday, with traders now watching supply at 1.2476/1.2526 (prior demand), which intersects with trendline support (1.2075 – prior support).
H1 timeframe:
After retesting 1.24, albeit probing lows at 1.2380, as we transitioned into US trade Monday, candle action tested the resolve of offers at 1.2450.
Resistance above 1.2450 can be located at 1.25, intersecting with trendline resistance (1.2813).
Indicator-based traders will also note the RSI value fast approaching overbought territory.
Structures of Interest:
The point at which 1.25 and H1 trendline resistance merge (red arrow) is likely to be a resistance of interest for intraday sellers today. This combination also benefits from converging with H4 supply at 1.2476/1.2526 and H4 trendline resistance.
Despite the above confluence, traders are also urged to remain aware of where we’re trading from on the daily timeframe: demand.