Following the Fed’s decision to leave rates on hold yesterday, the single currency responded by screaming to new highs of 1.1242 on the day. For those who read our previous report (blog.icmarkets.com/wednesday-16th-march-volatility-expected-today-with-several-high-impacting-news-events-set-to-take-the-stage/), you may recall us mentioning to watch for a bullish response from the 1.1065/1.1043 H4 area, which, as you can see, bounced almost to-the-pip. Well done to any of our readers who managed to board this rocket before it took off!
In view of price now trading above the 1.1200 figure, we would consider a long on a retest of this number today (with lower timeframe confirmation), targeting the 1.1300 region. Why 1.1300 and not 1.1250? Well, 1.1250 has not shown much feedback in the past especially during the month of February, hence why we’re looking higher. In support of this trade, we see room for price to move higher on both the weekly and daily charts. Weekly supply does not kick in until 1.1533-1.1278, whilst daily supply comes in a little higher at 1.1385-1.1332.
In addition to this long trade, we would also be very interested in shorting between the 1.1300 number and the H4 Quasimodo resistance level at 1.1338, as this area is bolstered by the higher-timeframe supplies mentioned above. We would still advise waiting for some sort of lower timeframe setup to form before selling here, since price could just as easily fake higher into the larger supplies which support our sell zone.
Levels to watch/live orders:
• Buys: 1.1200 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area). • Sells: 1.1300/1.1338 zone Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
Comments
ChatchaiVong
⋅
thank so much
ICmarkets
⋅
Thanks guys, good luck today!
hmmmpf
⋅
1.1200 is also .236 fib retracement. Going long there sounds like a good plan. Nice idea.