Going into the early hours of yesterday’s US segment, we can see that the single currency bottomed around August’s opening level at 1.1830. Soft US data, along with a USDX resistance at 11960 and daily supply at 11969-11938, helped lift the pair north, consequently ending the day closing beyond the 1.19 handle.
Similar to the USDX daily supply (only inverse), we also saw EUR daily demand brought into play yesterday at 1.1739-1.1823, which, as you can probably see, formed a beautiful buying tail. Also of particular interest is the weekly timeframe; price recently connected with nearby support at 1.1871.
Suggestions: In a nutshell, the structure of this pair can be boiled down to the following points:
• H4 trading above 1.19 – shows room to advance up to resistance at 1.1962.
• Daily price trading from demand (USDX from supply) – formed buying tail, and shows little resistance on the horizon.
• Weekly action trading from support – could possibly see price retest resistance at 1.2044.
Consequent to the above, we’re looking for price to retest 1.19 and hold as support today. Should this come to realization and price follows up with a full, or near-full-bodied candle, the team would consider a long, targeting 1.1962 as an initial take-profit line.
Similar to the USDX daily supply (only inverse), we also saw EUR daily demand brought into play yesterday at 1.1739-1.1823, which, as you can probably see, formed a beautiful buying tail. Also of particular interest is the weekly timeframe; price recently connected with nearby support at 1.1871.
Suggestions: In a nutshell, the structure of this pair can be boiled down to the following points:
• H4 trading above 1.19 – shows room to advance up to resistance at 1.1962.
• Daily price trading from demand (USDX from supply) – formed buying tail, and shows little resistance on the horizon.
• Weekly action trading from support – could possibly see price retest resistance at 1.2044.
Consequent to the above, we’re looking for price to retest 1.19 and hold as support today. Should this come to realization and price follows up with a full, or near-full-bodied candle, the team would consider a long, targeting 1.1962 as an initial take-profit line.
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