Weekly perspective:
EUR/USD bulls continued to play offensively last week, extending gains off nearby trend line support (taken from the low 1.0340). Despite price concluding the week not too far off its highs, though, the resistance area parked at 1.1717-1.1862 remains in play. For this reason, traders could witness selling pressure enter the market over the course of this week.
Daily perspective:
After a clean break of the June 26 high 1.1720, buyers on this timeframe appear to have cleared the path north for an approach towards resistance plotted at 1.1824, shadowed closely by a 38.2% Fib resistance at 1.1853. As marked on the chart, these barriers are also situated within the walls of the aforementioned weekly resistance zone.
H4 perspective:
The impact of Friday’s US employment report sent price action skyward in reasonably strong fashion. According to the Bureau of Labor Statistics, the US economy added 213K jobs in June, beating forecasts of 195K. Not so smooth, however, was the unemployment rate and average hourly earnings, both reporting lower-than-expected numbers, ultimately weighing on the greenback and benefiting the euro. The USD was already struggling ahead of the release amid trade war tensions between US and China.
H4 price action, as you can see, though, began mildly paring gains into the close after striking the mid-level resistance at 1.1750. Supporting this resistance are the following structures:
• Trend line resistance taken from the high 1.1996.
• Two AB=CD bearish completion points (black and pink arrows).
• RSI indicator nearing its overbought value.
• Seen planted within the confines of the weekly resistance area mentioned above at 1.1717-1.1862.
Areas of consideration:
A short from 1.1750 on the H4 scale, in view of the surrounding confluence, is a high-probability trade, according to our reading. Technically, the stop-loss order is best placed above Friday’s high at around the 1.1770 mark, with the initial take-profit target set at the 1.17 handle (28-pip stop – 42 pips to the first target ).
Today’s data points: ECB President Draghi speaks.
EUR/USD bulls continued to play offensively last week, extending gains off nearby trend line support (taken from the low 1.0340). Despite price concluding the week not too far off its highs, though, the resistance area parked at 1.1717-1.1862 remains in play. For this reason, traders could witness selling pressure enter the market over the course of this week.
Daily perspective:
After a clean break of the June 26 high 1.1720, buyers on this timeframe appear to have cleared the path north for an approach towards resistance plotted at 1.1824, shadowed closely by a 38.2% Fib resistance at 1.1853. As marked on the chart, these barriers are also situated within the walls of the aforementioned weekly resistance zone.
H4 perspective:
The impact of Friday’s US employment report sent price action skyward in reasonably strong fashion. According to the Bureau of Labor Statistics, the US economy added 213K jobs in June, beating forecasts of 195K. Not so smooth, however, was the unemployment rate and average hourly earnings, both reporting lower-than-expected numbers, ultimately weighing on the greenback and benefiting the euro. The USD was already struggling ahead of the release amid trade war tensions between US and China.
H4 price action, as you can see, though, began mildly paring gains into the close after striking the mid-level resistance at 1.1750. Supporting this resistance are the following structures:
• Trend line resistance taken from the high 1.1996.
• Two AB=CD bearish completion points (black and pink arrows).
• RSI indicator nearing its overbought value.
• Seen planted within the confines of the weekly resistance area mentioned above at 1.1717-1.1862.
Areas of consideration:
A short from 1.1750 on the H4 scale, in view of the surrounding confluence, is a high-probability trade, according to our reading. Technically, the stop-loss order is best placed above Friday’s high at around the 1.1770 mark, with the initial take-profit target set at the 1.17 handle (28-pip stop – 42 pips to the first target ).
Today’s data points: ECB President Draghi speaks.
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