Nice-looking long below the 1.17 handle seen on the euro...
Going into the early hours of Europe yesterday, the 1.17 handle elbowed its way into the spotlight and provided strong support. The euro, as you can see however, failed to sustain gains beyond the H4 mid-level resistance at 1.1750 as the USDX H4 candles retested support fixed at 11962.
Though weekly demand at 1.1662-1.1814 remains in play, the bulls have yet to register anything notable from this region. In the event that the area eventually gives way, the crosshairs will then likely be fixed on the nearby weekly support area coming in at 1.1533-1.1278. Meanwhile, down on the daily timeframe price is seen hovering just ahead of demand pegged at 1.1612-1.1684.
Suggestions: As the bears look to reassert their dominance below 1.1750 right now, key support remains at the 1.17 handle. Psychological numbers, as you’re probably aware, are typically prone to fakeouts due to the amount of orders that these levels attract. Therefore, the plan is to watch for H4 price to test 1.17 today and look for a fakeout down to the nearby Quasimodo support level at 1.1681. From our point of view, a buy from 1.1681 is a high-probability setup as not only does the number denote the top edge of the aforementioned daily demand, it also is located within the lower limits of the said weekly demand!
Data points to consider: ECB President Draghi speaks at 6.15pm; US ADP non-farm employment change at 1.15pm; US ISM non-manufacturing PMI at 3pm, followed closely by Fed Chair Janet Yellen taking the stage at 8.15pm GMT+1.
Levels to watch/live orders:
• Buys: Watch for H4 price to fake through 1.17 and attack H4 Quasimodo support at 1.1681 (waiting for a H4 bullish pin-bar to form here is advised, stop loss: either beyond the fakeout candle’s tail or beneath the lower edge of weekly demand at 1.1660).
• Sells: Flat (stop loss: N/A).
Though weekly demand at 1.1662-1.1814 remains in play, the bulls have yet to register anything notable from this region. In the event that the area eventually gives way, the crosshairs will then likely be fixed on the nearby weekly support area coming in at 1.1533-1.1278. Meanwhile, down on the daily timeframe price is seen hovering just ahead of demand pegged at 1.1612-1.1684.
Suggestions: As the bears look to reassert their dominance below 1.1750 right now, key support remains at the 1.17 handle. Psychological numbers, as you’re probably aware, are typically prone to fakeouts due to the amount of orders that these levels attract. Therefore, the plan is to watch for H4 price to test 1.17 today and look for a fakeout down to the nearby Quasimodo support level at 1.1681. From our point of view, a buy from 1.1681 is a high-probability setup as not only does the number denote the top edge of the aforementioned daily demand, it also is located within the lower limits of the said weekly demand!
Data points to consider: ECB President Draghi speaks at 6.15pm; US ADP non-farm employment change at 1.15pm; US ISM non-manufacturing PMI at 3pm, followed closely by Fed Chair Janet Yellen taking the stage at 8.15pm GMT+1.
Levels to watch/live orders:
• Buys: Watch for H4 price to fake through 1.17 and attack H4 Quasimodo support at 1.1681 (waiting for a H4 bullish pin-bar to form here is advised, stop loss: either beyond the fakeout candle’s tail or beneath the lower edge of weekly demand at 1.1660).
• Sells: Flat (stop loss: N/A).
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