For those who read our previous report on the EUR/USD blog.icmarkets.com/t...-outlook-and-review/ you may recall us mentioning to keep a close eye on 1.1150 for potential buy trades yesterday. As can be seen from the chart, price reacted nicely to this barrier and did in fact reach target. Well done to any of our readers who managed to lock in some green pips from this small move!
In light of price now trading around 4hr supply at 1.1242-1.1212 right now (surrounds a daily swap (resistance) level at 1.1214), where do we see this market heading today? Well for starters, the approach to the current 4hr supply zone is interesting (blue trendline). Check out how each time price rallied higher a spike lower was seen to collect unfilled buy orders, thus suggesting weak bids below price. On the contrary, the majority of offers may have already been taken out within the current 4hr supply (black arrow), which could potentially weaken the chances of a second rebound from here. The next fresh area above comes in around the 1.1279/1.1300 region which lines up perfectly with the underside of weekly supply at 1.1532-1.1278.
So, in a nutshell our team’s bias remains short on the EUR pair for the time being. Areas we have our eye on are the aforementioned 4hr supply zone, and also 1.1279/1.1300. Both zones have the potential to hold price lower in our opinion, but just to be sure, we would recommend only entering short should lower timeframe confirmation also be present.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1242-1.1212 Tentative – confirmation required (Stop loss: dependent on where one confirms this area) 1.1279/1.1300 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
In light of price now trading around 4hr supply at 1.1242-1.1212 right now (surrounds a daily swap (resistance) level at 1.1214), where do we see this market heading today? Well for starters, the approach to the current 4hr supply zone is interesting (blue trendline). Check out how each time price rallied higher a spike lower was seen to collect unfilled buy orders, thus suggesting weak bids below price. On the contrary, the majority of offers may have already been taken out within the current 4hr supply (black arrow), which could potentially weaken the chances of a second rebound from here. The next fresh area above comes in around the 1.1279/1.1300 region which lines up perfectly with the underside of weekly supply at 1.1532-1.1278.
So, in a nutshell our team’s bias remains short on the EUR pair for the time being. Areas we have our eye on are the aforementioned 4hr supply zone, and also 1.1279/1.1300. Both zones have the potential to hold price lower in our opinion, but just to be sure, we would recommend only entering short should lower timeframe confirmation also be present.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1242-1.1212 Tentative – confirmation required (Stop loss: dependent on where one confirms this area) 1.1279/1.1300 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
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