Weekly timeframe perspective: From this angle, the upward momentum from weekly demand at 1.0333-1.0502 seems to be crumbling, as weekly rejection wicks are being seen forty or so pips from below a major weekly swap (resistance) level at 1.1096, which could encourage further downside in the market. Let’s see what we can find on the lower timeframes…
Daily timeframe perspective: Contrary to the weekly chart, the daily outlook remains relatively positive. Price is currently teasing a daily swap (support) level coming in at 1.0825. Provided that the buyers can register some meaning here this week, we feel there’s a good chance that price will likely attack the aforementioned major weekly swap (resistance) level.
4hr timeframe perspective: The 4hr timeframe shows that the market opened at 1.0884, and saw a decline in value down to 4hr demand at 1.0766-1.0826 (located just below the aforementioned daily swap level). For those who read our reports regularly, you may recall that we already have a long position in the market from 1.0834 – partial profits have already been taken at the 1.0900 handle. Our stop loss remains below the 4hr zone at 1.0759 for the simple reason that we expected price to retest our 4hr demand area…
Given that price has yet to hit the weekly swap (resistance) level, and that the buyers and sellers are currently seen pulling for position around a daily swap (support) level (see above) at the moment, we feel there may be room for the Euro to appreciate. The move above 1.0900 seen on Friday has very likely consumed most of the sellers in this region, and potentially cleared the path north up to a rather weak-looking 4hr sell zone coming in at 1.1050-1.1011, which, as we’re sure you can already see, is located just below the aforementioned weekly swap (resistance) level. Therefore, should active buyers come in to the market today within the current 4hr demand area, we may consider adding (with lower timeframe confirmation) to our current live position, and attempt to ride this train all the way up to the aforementioned 4hr sell zone, and potentially, the weekly swap (resistance) level just above, given enough time.
Current buy/sell orders:
• Buy orders: 1.0834 (Predicative stop-loss orders seen at: 1.0759) 1.0766-1.0826 [Tentative – confirmation required] (Predicative stop-loss orders seen at: 1.0759).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).