Weekly Timeframe: Selling interest has recently come into the market below weekly supply at 1.1678-1.1458. Assuming that the sellers can continue with this tempo, we see very little reason why price cannot retest the weekly Quasimodo support level at 1.1109.
Daily Timeframe: The daily timeframe shows that price has closed below a small daily demand area coming in at 1.1045-1.1127, which as a result, has very likely cleared the path back down towards a daily demand area seen at 1.1045-1.1127 (encapsulates the aforementioned weekly Quasimodo support level).
4hr Timeframe: The recent descent (which we can only assume was because of the positive core CPI data released yesterday) on the EUR/USD pair, as you can see, has taken out several technical barriers along the way, and is, at the time of writing, seen retesting the 1.1200 handle as resistance. In the event that the sellers can hold out below 1.1200, our primary focus for today will be looking for confirmed shorts around this level. For anyone thinking the same, please do be aware that if you decide to sell here, you’ll effectively be selling down towards a long-term weekly Quasimodo support level seen in pink at 1.1109, so careful trade management is advised.
However, if price closes above 1.1200, we’ll then shift to begin watching for price to retest this level as support. Any buys taken here, in our opinion, will need confirmation, and will (for us anyway) have a fixed take-profit target set at 1.1237, seen just below immediate 4hr supply above at 1.1262-1.1240.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: currently watching for lower timeframe price action around 1.1200 (Predicative stop-loss orders seen at: dependent on where one confirms this level).