Daily Timeframe: The shows the same as the , only in more detail. Price is seen ranging between smaller daily zones (1.26386-1.25459/1.22877-1.23809) within the aforementioned larger weekly areas. We would need to see a break above this range for us to begin looking at buying long/medium term positions on this pair. Let’s see what the 4hr timeframe has to say.
4hr Timeframe: The EUR/USD pair as you can see reacted well to 4hr resistance cluster seen marked with a red circle (1.25/downward channel resistance). We do hope some of our readers are took advantage of this move.
Where do we see price moving to today? No significant support is seen until 1.24422, so the Euro could indeed continue south. With that being said for anyone currently short, you should expect some buying opposition around this area. We are going to be watching this level closely around 1.24446 for an entry long with confirmation, and in all honesty we’d only be trading for a bounce up to the channel resistance. In the event that this 4hr is consumed, this would likely attract further selling down to 1.24, where again we’d be looking to enter with lower-timeframe confirmation around 1.24050.
The reason why we’re not placing any pending orders on this pair for the moment is simply because we have no higher timeframe direction. To put it another way – price is currently ranging on the higher timeframes, and we USUALLY avoid using pending orders in such market environments.
• Buy orders: 1.24446 (Predicative stop-loss orders seen at: Dependent on how one confirms this level) 1.24050 (Predicative stop-loss orders seen at: 1.23900).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).