In support of the major breaking below the current H4 demand, daily recently chalked up two back-to-back selling wicks, which show room to extend down to a weekly support seen at 1.0819.
Our suggestions: By and large, our desk has absolutely no interest in buying the EUR today. We feel that a push below the current H4 demand is possible as Europe gets under way. According to the higher timeframes, the next downside target is the aforementioned weekly support. However, before we reach this point, the H4 Quasimodo support at 1.0859 is likely to facilitate a BOUNCE back up to the underside of the H4 demand. If you’re interested in this level, there’s little room to wait for confirmation. Therefore, an entry at market, with stops placed below 1.0850, targeting 1.0874 is how we plan to approach this level. The risk/reward is not great, we grant you, but the trade is high probability.
We have a relatively quiet docket today with only the US advance GDP being released at 12.30pm GMT . Nonetheless, this report is considered a high-impacting event, so remain vigilant during this time.