Weekly closing price: 1.1149
Weekly opening price: 1.1152
Weekly view: From this viewpoint, we can see that last week’s weekly candle turned from the underside of a major coming in at 1.1533-1.1278. Erasing all of the prior week’s gains, this move could trigger further selling in this market this week. The next downside target to have an eye on falls in around the 1.0970 region, followed closely by a major support seen at 1.0819.
Daily view: The story on the shows that price is now seen deep within a drawn from 1.1224-1.1072, but as we already mentioned in previous reports, there’s been little noteworthy intent registered from this barrier as of yet. Perhaps the most compelling factor here is that the candles are in the process of completing an pattern (black arrows), which terminates around the lower edge of the above said , and converges with a support extended from the low 1.0516.
H4 view: A brief look at recent dealings on the H4 chart reveals that Friday’s US CPI data came in hotter than expected. This, as you can see, sent the EUR screaming lower. Both the 1.12 handle and the support taken from the low 1.1045 were taken out, with price ending the week closing just ahead of a demand base seen at 1.1131-1.1143.
Direction for the week: Pressure from the overhead weekly will likely push the shared currency down to the lower edge of the current daily , which, as we mentioned above, converges with an point and a support. While the weekly chart suggests further selling beyond this point, we do expect at least a bounce from this area to be seen.
Direction for today: In that there’s very little market-moving data on the docket today, we may see price consolidate around the current H4 .
Our suggestions: After analyzing all three timeframes, we see two points of interest going into trade this week:
1. Assuming price bounces from nearby H4 demand, looking to short from 1.12 is valid, in our opinion, due to merging with the recently broken H4 , and also not forgetting that the both higher-timeframe charts suggest lower prices could be seen this week.
2. A break below the current H4 would likely place the H4 support at 1.1075 and the 1.11 band on the hit list. Not only is this a good take-profit area for any shorts in this market, it is also a fantastic barrier to look for longs. It sits within the depths of the aforementioned daily , as well as merging with both the above noted daily support and a deep H4 88.6% Fib support at 1.1081.
Levels to watch/live orders:
• Buys: 1.1075/1.11 strong-looking buy zone which could, dependent on the time of day and approach, be sufficient enough to condone an entry without waiting for lower timeframe confirmation (Stop loss: 1.1060).
• Sells: 1.12 region H4 close required (Stop loss: beyond the trigger candle).