Weekly Gain/Loss: -0.46%
Weekly Close: 1.1335
Weekly perspective:
Over the course of last week’s session the single currency continued to spiral south. By way of a bearish pin-bar formation, the pair recorded its fourth consecutive losing week and placed a question mark on the demand area drawn from 1.1312-1.1445. In the event the unit pushes for lower ground this week, traders are urged to keep demand at 1.1119-1.1212 in sight.
Daily perspective:
In the shape of two back-to-back near-full bodied bearish candles, both Thursday and Friday’s sessions notched up weighty losses last week, pulling price action towards the 1.1327 neighbourhood: a support level that fuses closely with a 127.2% Fib ext. point at 1.1331. With weekly demand mentioned above at 1.1312-1.1445 appearing somewhat fragile at the moment, 1.1327 offers a last line of defense for buyers. In the event 1.1327 gives way, however, all eyes will likely be on nearby support at 1.1285.
H4 perspective:
Bolstered on the back of a well-bid USD, the H4 candlesticks concluded Friday shaking hands with a particularly interesting area (green) of support marked between 1.13/1.1327. Comprised of the current daily support at 1.1327, November’s opening level at 1.1314 and the round number 1.13, there’s a chance the market may observe a correction from this base today/early week.
Areas of consideration:
As a fakeout may occur beyond 1.13 (common viewing around psychological numbers), waiting for additional candlestick confirmation to form before pulling the trigger out of 1.13/1.1327 is an option (entry/stop parameters can be defined by the candlestick structure). As for an initial upside target, 1.1372 is likely to hold active sellers. Therefore, reducing risk to breakeven at this point and taking some profit off the table is something to consider. Beyond 1.1372, the 1.14 handle is in place as the next take-profit target.
Today’s data points: FOMC member Daly speaks; US banks are closed in observance of Veterans Day.
Weekly Close: 1.1335
Weekly perspective:
Over the course of last week’s session the single currency continued to spiral south. By way of a bearish pin-bar formation, the pair recorded its fourth consecutive losing week and placed a question mark on the demand area drawn from 1.1312-1.1445. In the event the unit pushes for lower ground this week, traders are urged to keep demand at 1.1119-1.1212 in sight.
Daily perspective:
In the shape of two back-to-back near-full bodied bearish candles, both Thursday and Friday’s sessions notched up weighty losses last week, pulling price action towards the 1.1327 neighbourhood: a support level that fuses closely with a 127.2% Fib ext. point at 1.1331. With weekly demand mentioned above at 1.1312-1.1445 appearing somewhat fragile at the moment, 1.1327 offers a last line of defense for buyers. In the event 1.1327 gives way, however, all eyes will likely be on nearby support at 1.1285.
H4 perspective:
Bolstered on the back of a well-bid USD, the H4 candlesticks concluded Friday shaking hands with a particularly interesting area (green) of support marked between 1.13/1.1327. Comprised of the current daily support at 1.1327, November’s opening level at 1.1314 and the round number 1.13, there’s a chance the market may observe a correction from this base today/early week.
Areas of consideration:
As a fakeout may occur beyond 1.13 (common viewing around psychological numbers), waiting for additional candlestick confirmation to form before pulling the trigger out of 1.13/1.1327 is an option (entry/stop parameters can be defined by the candlestick structure). As for an initial upside target, 1.1372 is likely to hold active sellers. Therefore, reducing risk to breakeven at this point and taking some profit off the table is something to consider. Beyond 1.1372, the 1.14 handle is in place as the next take-profit target.
Today’s data points: FOMC member Daly speaks; US banks are closed in observance of Veterans Day.
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