Following six consecutive losing days, a steady wave of bids flooded this market during yesterday’s trading. Consequent to this, the EUR clocked new highs of 1.1446 on the day, just missing the H4 resistance seen at 1.1447 by a mere pip! The reason we believe this bounce took place, other than the fact that the U.S. dollar fell across the board, was price was also trading from within a daily demand base seen at 1.1385-1.1332. With that being said, however, In view of the weekly chart showing price housed within weekly supply at 1.1533-1.1278 we do not imagine this recent surge in buying can be sustained. Technically, price closing beyond the daily resistance line seen at 1.1460 today would be a surprise as this would likely indicate bullish strength within weekly supply!
Ultimately, given the above points, downside movement is favored for the time being! On that account, should a retest of the current H4 resistance and its neighboring daily resistance at 1.1460 be seen (green circle), our team will begin hunting for lower timeframe (confirmed) shorts, targeting the 1.1400 handle as our first take-profit zone. Confirmation could be in the form of either an engulf of demand and subsequent retest, a break/retest of a trendline or simply a collection of selling wicks around a lower-timeframe resistance hurdle. We search for lower timeframe confirmation between the M15 the H1 timeframes, since most of our higher timeframe areas begin with the H4. Stops usually placed 5-10 pips beyond your confirming structures.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1460/1.1447 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
Ultimately, given the above points, downside movement is favored for the time being! On that account, should a retest of the current H4 resistance and its neighboring daily resistance at 1.1460 be seen (green circle), our team will begin hunting for lower timeframe (confirmed) shorts, targeting the 1.1400 handle as our first take-profit zone. Confirmation could be in the form of either an engulf of demand and subsequent retest, a break/retest of a trendline or simply a collection of selling wicks around a lower-timeframe resistance hurdle. We search for lower timeframe confirmation between the M15 the H1 timeframes, since most of our higher timeframe areas begin with the H4. Stops usually placed 5-10 pips beyond your confirming structures.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1460/1.1447 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
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