Weekly Timeframe: The weekly timeframe shows that price has breached a major weekly demand area seen at 1.1875-1.2095. Assuming that the majority of buyers are consumed here, price will likely be free to test a weekly Quasimodo support level seen below at 1.1758. However, as always, do be prepared for the possibility a sneaky fakeout may take place here.
Daily Timeframe: The recent break below daily demand seen at 1.1875-1.1971 consequently forced the Euro down towards a partially consumed daily demand area coming in at 1.1776-1.1838. This could – assuming that the buyers can successfully defend this area of course, provide a base to support a fakeout below the recently breached weekly demand area mentioned above. Let’s see what the 4hr timeframe has to say about this.
4hr Timeframe: The 4hr timeframe shows that the recent descent found the 1.1800 handle to be supportive enough to allow the buyers back into play. The rebound seen here does indeed look promising; nonetheless the only way to know if the buying was genuine and not just traders short-covering would be for the market to drive deep into minor 4hr supply consuming any selling opposition that may reside there. As things stand, we have absolutely no interest in selling this pair at the moment, and likewise buying will only be considered once/if the above takes place. Therefore with this in mind, opting to stand on the side lines here may be the best path to take.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Comments
SetagayaGirl
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"Stand aside". Good call. It's what good traders often do, and poor traders rarely do.
ICmarkets
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Hi SetagayaGirl,
Totally agree, having no position is a position in itself and a very safe one :)
IC Markets
Patladj.
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Stand aside whlile the most easily predictive ever move on the market is developing in front of our eyes? Sorry. No.
I'm all in dollars.
Since March - 2014
Look at the monthy timeframe. Dollar is in total explosion. No rest till 113DXY points.
I'm started to see non-institutional buyers. That's exactly when the things are gonna get hot. Very steep move approaching.
ICmarkets
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Hi Patladj,
No need for apologies. Every trader has his/her own opinion, that's what makes the market move :) Standing aside for a day until our setup is seen will not make much difference in our view.