ICmarkets

EUR/USD: Technical outlook and review.

FX:EURUSD   Euro Fx/U.S. Dollar
120 0 1
4hr TF.

The higher-timeframe picture resembles the following:

• Weekly TF: At the time of writing the sellers seem to be pushing deep within weekly demand at 1.32940-1.34847, this happened exactly the same way last week and the week before that, we thought a break below was going to happen, all of a sudden a bullish pin bar formed.

• Daily TF: Buyers and sellers still remain trading between the daily supply area above at 1.34433-1.34202 and a daily level of interest below at 1.33559. A break below could force prices down to a daily demand area at 1.31037-1.31755, conversely, a break above would likely see price hitting a daily D/S flip area at 1.34760-1.35265.

The market opened just below the round number 1.34 at 1.33879, the buyers then made a run for the round number, failed miserably, and then eventually dropped once again back down to the 4hr demand area at 1.33360-1.33619.

The price action being formed is beautiful on this pair. Take a look at the green down trend line , yes, we know this highlights the fact that price is trending south, but it also represents what pro money’s likely intentions are for the future. Notice how every time a decline was seen, price then rallied back up to collect sell orders for yet another push to the downside, however clearing out the sell orders also clears the path north for any future buying which is highly likely at the moment, as let’s not forget, price is currently trading within a weekly demand area (levels above), so higher prices are naturally expected.

For price to have any chance of rallying higher from here, a break above the high marked with a green flag will need to be seen at 1.34106, why? Well, if price breaks above this high, we have effectively entered into a zone that has very little supply/sellers left, so price would be free to travel north. If during this week sometime, we see a close above the 4hr decision-point area at 1.34433-1.34305, this will also mean not only has this area of supply been consumed, but also a daily decision-point area at 1.34433-1.34202. This means we can then likely expect higher prices at least up to the next fresh supply areas on the respective timeframes (Daily: 1.34760-1.35265, 4hr: 1.34760-1.34943).

Pending orders/P.A confirmation levels:

• The pending buy order (Green line) set within 4hr demand (1.33360-1.33619) at 1.33526 is now active, Our first take-profit level was hit at 1.34, so do keep an eye on our second and final take-profit level set at 1.34305.
• No P.A confirmation buy levels (Red line) are seen in the current market environment.

• Pending sell orders (Green line) are seen just below the 4hr D/S flip area (1.34760-1.34943) at 1.34753.The reasoning behind setting a pending sell order here was because this is the area we believe on this timeframe pro money sellers made the decision to push prices south into (what was at the time) 4hr demand at 1.33984-1.34404, with the possibility of unfilled sell orders still waiting there.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 1.33526 (Active) (SL: 1.33280 TP: 1.34 1.34305). P.A.C: No P.A confirmation buy levels are seen in the current market environment.

• Areas to watch for sell orders: P.O: 1.34753 (SL: 1.35031 TP: Dependent on price approach). P.A.C: No P.A confirmation sell levels are seen in the current market environment.
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