The 1.1059 daily level is quite notable from a technical perspective on the H4 chart: a 38.2% Fibonacci level at 1.1065, a mid-level support at 1.1050 and a broken Quasimodo line at 1.1043 all converge around this barrier. In addition to this confluence, we like the fact that weekly price has yet to reach supply at 1.1533-1.1278, suggesting the single currency still has room to the upside.
Therefore, the 1.1065/1.1043 H4 area is our pre-determined buy zone going into today’s sessions. We would, however, prefer to see a lower timeframe buy setup form within this region before entering into a buy position here for two reasons. Firstly, the FOMC is set to take the stage today which could potentially cause ripples in this market. Secondly, the rather large psychological support sitting just below at 1.1000 may act as a magnet for price thus pushing the EUR below our buy zone. Nevertheless, should all go to plan and we manage to pin down a position within the above said H4 area, we’d look to target the H4 supply at 1.1121-1.1103 as our first take-profit zone.
Levels to watch/live orders:
• Buys: 1.1065/1.1043 Tentative – confirmation required(Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).