ICmarkets
Short

EUR/USD: Technical outlook...

FX:EURUSD   Euro Fx/U.S. Dollar
272 4 8
Weekly gain/loss: - 88 pips
Weekly closing price: 1.0882

Weekly view: As you can see, the shared currency continued to push lower last week, consequently breaking through support at 1.0970 (now acting resistance) and closing nearby a major support barrier drawn from 1.0819. With this level having been a considerable support since mid-May 2015, a bounce from this neighborhood is likely. However, the other key thing to note here is that just below it we see a long-term trendline support taken from the low 0.8231 and an AB=CD completion point around the 1.0667ish area (black arrows). Therefore, a whipsaw through 1.0819 is something we should all be prepared for prior to serious buyers step in.

Daily view: The daily chart does not seem to be throwing up any red flags as the path south appears clear for price to shake hands with the above said weekly support hurdle. Should the sellers hit the brakes here and reverse without striking the weekly support, nonetheless, we would consider the supply zone seen at 1.1039-1.0998 to be a viable area for price to rebound from, since it merges with the key figure 1.10.

H4 view: A quick recap of Friday’s trading on the H4 shows just how dominant the sellers were! The only relief the EUR saw was during the US session where price found a pocket of bids just ahead of the mid-way support 1.0850, pushing price to highs of 1.0888 by the day’s end.

Direction for the week: Until the pair touches gloves with the weekly support level mentioned above at 1.0819, we strongly feel price will continue to lose ground this week.

Direction for today: The opening candles will likely want to cross swords with the nearby broken H4 Quasimodo resistance at 1.0903, which fuses beautifully with psychological resistance 1.09. Personally, we don’t imagine price making much headway beyond this point. If it does, however, we’d then be looking for the candles to connect with the aforementioned daily supply base.

Our suggestions: A retest of the 1.09 region followed by a reasonably sized H4 bearish close is, at least in our book, worthy of attention. A short could be taken from here, targeting the mid-way support 1.0850 and then the weekly support at 1.0819 as your final take-profit zone.

Data points to consider today are mainly speeches from Fed officials at 1pm and 6pm. In addition, there’s also European manufacturing data scheduled for release between 7-8am GMT             , which, in our opinion, should not be ignored.

Levels to watch/live orders:

• Buys: Flat (Stop loss: N/A).
• Sells: 1.09 region (H4 bearish close required prior to pulling the trigger, Stop loss: ideally beyond the trigger candle).
Very nice analysis! Thank you for sharing this outlook.
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ICmarkets PRO x381966011250105
You're very welcome. Glad you find it useful!
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Great job. Do you guys do this forecasts everyweek?

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Hi C,

We analyse eight pairs on a daily basis. Here is a link to our blog: http://blog.icmarkets.com/
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