ICmarkets
Long

EUR/USD: Technical outlook and review.

FX:EURUSD   Euro Fx/U.S. Dollar
200 1 3
Sunday’s open 1.1109 saw the single currency gap around 17 pips lower, consequently breaking below daily support at 1.1122. Following this, price struck the underside of this number twice before heavily selling-off going into yesterday’s London open. H4 support (now acting resistance) at 1.1059 put up very little fight, allowing price to reclaim the 1.1000 region by the day’s end.

This recent selling also saw price come close to connecting with weekly support at 1.0983, whilst daily action saw demand at 1.1072-1.1013 suffer a slight break. Ultimately, we feel the EUR will correct itself soon, but where and when is difficult to tell right now.

On the one hand, stops have likely been triggered below daily demand thus giving pro money liquidity to buy, so should price eventually test 1.1000 today, this could be a sound platform in which to be looking to buy from. On the other hand, weekly flow shows room to move a little lower down to support at 1.0983, thus price could fake stops below 1.1000 and trade into the H4 support area at 1.0937-1.0984 before the buyers make an appearance. In addition to this, we also like the look of the impressive H4 demand drawn from 1.0903-1.0928.

Given the points made above, our plan of attack will be simple today – watch for (lower timeframe) confirmed buying opportunities from both 1.1000 and the H4 support area at 1.0937-1.0984 (here, however, one should be prepared for a fakeout lower to the H4 demand mentioned above at 1.0903-1.0928).

Levels to watch/live orders:

• Buys: 1.1000 Tentative – confirmation required (Stop loss: dependent on where one confirms this level) 1.0937-1.0984 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).
roadtogo
a year ago
what do you mean by sells flat? one should never short?
Reply
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