ICmarkets
Short

EUR/USD: Technical outlook and review....

FX:EURUSD   Euro Fx/U.S. Dollar
548 2 11
The EUR/USD             market remained pretty much unchanged by the close 1.0906 last week, consequently printing a weekly indecision candle. As such, price is still confined between 1.0983/1.0851 (blue/red lines), which, as you can see, has been the case since Dec 7th 2015. Beyond this tight range, however, there’s weekly demand seen penciled in below at 1.0333-1.0502 (converges with a long-term trendline extended from the low 0.8231), and weekly supply above at 1.1532-1.1278.

On the other side of the coin, daily flow shows that support at 1.0813 and supply coming in at 1.0992-1.0951 were both hit during last week’s trading, with price settling for the week betwixt the two aforementioned zones.

Turning our attention to the H4 chart, nevertheless, our long position taken from 1.08153 on Wednesday hit its final take-profit level (the H4 Quasimodo at 1.0984) going into Friday’s American session. For those who read our previous report (http://blog.icmarkets.com/friday-15th-january-keep-an-eye-on-the-u-s-dollar-at-1-30-pm-gmt-volatility-expected/), you may recall that we also had a pending short order placed at 1.0983 as this was not only a perfect take-profit area, but also a nice sell zone too. It boasted a 78.6% Fibonacci barrier at 1.0985, a large Psychological resistance just above it at 1.1000 and sat nicely within the extremes of the above said daily supply zone.

At the time of writing, our stop for the current short position is sitting at breakeven with 70% of the trade already being liquidated a little before the weekly close at 1.0920. Well done to any of our readers who took part in the above trades last week, the EUR/USD             was very kind to our method! Regarding the remaining 30% of the sell position, however, we’re eyeing the H4 Quasimodo support below at 1.0819 (the region we initially bought from) this week, since it boasts a collection of converging structures (daily support at 1.0813, psychological support 1.0800, 61.8% Fibonacci support at 1.0815). Should our short position hit final take profit, we may, dependent on how the lower timeframes behaves and the time of day, look to go long from here again.

As noted in previous reports, other than the H4 buy and sell zones mentioned above, the levels in between – the psychological support 1.0900 and mid-level support at 1.0850 are considered by us to be mid-range since there’s little higher-timeframe convergence.

Levels to watch/live orders:

• Buys: 1.0819/1.0800 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: 1.0983 LIVE (Stop loss: breakeven).
SSSDEV
10 months ago
Nice analysis. All the levels more or less are seen in my charts too.keep it up
Reply
ICmarkets PRO SSSDEV
10 months ago
That's good to hear! Thanks!

Good luck this week!

IC markets
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