After price shook hands with the 1.1100/1.1111 barrier yesterday, a strong wave of offers came into the market. This saw the mid-level number 1.1050 taken out and retested as resistance before price continued plummeting towards 1.1000, which as you can clearly see has so far held firm. Fundamentally, we believe this decline in value was caused by the lack of Greek news regarding a bailout proposal.
Concerning the higher timeframes, we are seeing very little harmony at this point. The weekly timeframe is still somewhat range bound between weekly demand at 1.0519-1.0798 and weekly supply at 1.1532-1.1278, while the daily timeframe shows price still hovering above daily demand coming in at 1.0886-1.0978.
With today being the last trading day of the week, and the seemingly never-ending Greece situation looking to trail into the weekend once again, our team has decided to play it relatively cautious today and only trade if price comes into contact with areas which are supported by higher timeframe structures:
1. As per yesterday’s analysis, we still have our eye on the 4hr supply zone at 1.1171-1.1147, which not only encapsulates a daily swap level at 1.1148, but also converges with both a Fibonacci retracement value of 0.618% and the mid-level number resistance at 1.1150. 2. The 4hr demand area at 1.0886-1.0924, which if you look across to the daily chart, you’ll see it has the backing of a daily demand zone coming in at 1.0886-1.0978.