Daily Timeframe: Yesterday’s trading action reveals that the buyers attempted to push the Euro higher, but found the 1.1678 hurdle too strong to overcome. As a consequence, this formed a ‘middle-of-the-road’ pattern.
4hr Timeframe: For anyone who read our last report on the Euro , you may recall us mentioning that we were short from 1.16017 and were attempting to target 1.1500. As we can all see, price never made it to our target, instead, we ended up closing our position for a small profit at 1.1571 for the simple reason that price closed above a 30-minute supply area visible at 1.1566-1.1553.
Recent developments show that the EUR/USD is presently consolidating ahead of the ECB press conference which is scheduled to commence this afternoon at 1:30pm GMT time. Range limits are seen between a 4hr at 1.1530-1.1546, and a 4hr supply area coming in at 1.1647-1.1625. We feel that price will likely meander within this range until the ECB action gets under way. That being the case, buying or selling the Euro at this point in time could cause unnecessary stress. Waiting for price to break and (possibly) retest this range would be a far more conservative approach, and one that we firmly support.
A break above the current 4hr range would likely open the gates for price to challenge the 1.1700 line; conversely a push below would likely force the market to test 1.1500.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).