Starting up on the weekly chart, we can see that the bears have dominated this market since whipsawing through the upper boundary of a major weekly supply zone at 1.1533-1.1278. In our estimation, the next downside target can be seen at 1.0796 – a weekly support. Zooming in and looking at the daily chart, daily demand at 1.1143-1.1179 was recently consumed and is now being retested as supply. In the event that this boundary manages to hold price, it’s possible we may see the shared currency pay a visit to daily demand penciled in at 1.1057-1.1108.
Stepping over to the H4 chart, things become a little more interesting. Firstly, take note that this pair is currently entrenched in a steep H4 downward channel (1.1616/1.1500), secondly, see how price is forming a symmetrical H4 three-drive bullish pattern within this H4 channel beginning from the high 1.1446 (see blue lines). On top of this, both the H4 channel support line and the three-drive formation tie in with a nice-looking H4 demand coming in at 1.1057-1.1096 (sits within the extremes of the above said daily demand zone), which is positioned just below the 1.11 handle.
Our suggestions: Shorts (at market) from the H4 supply zone seen at 1.1168-1.1198 which converges with the H4 channel resistance line (1.1616) could be something to consider today (see green circle), targeting the aforementioned H4 demand base. Additionally, traders may be interested in entering long from this said H4 demand should price reach this low today given the confluence we noted above. However, play this area carefully guys as let’s not forget that the weekly chart shows further downside is a possibility.
Levels to watch/live orders:
• Buys: 1.1057-1.1096 tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: 1.1168-1.1198 possible market entry here (Stop loss: above the H4 supply at 1.1205).
Stepping over to the H4 chart, things become a little more interesting. Firstly, take note that this pair is currently entrenched in a steep H4 downward channel (1.1616/1.1500), secondly, see how price is forming a symmetrical H4 three-drive bullish pattern within this H4 channel beginning from the high 1.1446 (see blue lines). On top of this, both the H4 channel support line and the three-drive formation tie in with a nice-looking H4 demand coming in at 1.1057-1.1096 (sits within the extremes of the above said daily demand zone), which is positioned just below the 1.11 handle.
Our suggestions: Shorts (at market) from the H4 supply zone seen at 1.1168-1.1198 which converges with the H4 channel resistance line (1.1616) could be something to consider today (see green circle), targeting the aforementioned H4 demand base. Additionally, traders may be interested in entering long from this said H4 demand should price reach this low today given the confluence we noted above. However, play this area carefully guys as let’s not forget that the weekly chart shows further downside is a possibility.
Levels to watch/live orders:
• Buys: 1.1057-1.1096 tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: 1.1168-1.1198 possible market entry here (Stop loss: above the H4 supply at 1.1205).
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