Ok, let’s move on to the charts. From the , price stabbed the underside of a major coming in at 1.1533-1.1278 (held the market lower since May 2015), and is now seen lurking just ahead of the yearly opening level at 1.0873. Along the same vein, the daily candles are also seen hovering just above the top edge of a demand base drawn from 1.0850-1.0887. This area, as you can probably see, houses the aforementioned yearly opening level, and sits directly above a weekly support penciled in at 1.0819.
Stepping across to the H4 chart, we can see the pair trading a few pips ahead of the 1.09 handle, followed closely by a Quasimodo support at 1.0892. From current price, the next upside target can be seen at 1.0943: a resistance line that sits nearby November’s opening level at 1.0970.
Our suggestions: While 1.09 may bounce price today, the level we have interest in is the H4 Quasimodo support seen below at 1.0859. Building a case for entry here, we have the line placed deep within the current daily demand area, and is also located less than 20 pips below the yearly opening level mentioned above. Trading from 1.0859 also allows one to employ a tight stop-loss order, which, in our opinion, is best positioned below the current daily demand base at around the 1.0845ish range. Ultimately, we’d be looking to reduce risk to breakeven and take a large portion of the position off the table around the 1.09 neighborhood.
Data points to consider: There’s little high-impacting news scheduled for either the EUR or USD today.
Levels to watch/live orders:
• Buys: 1.0858 (pending order, stop loss: 1.0845).
• Sells: Flat (stop loss: N/A).