Daily Timeframe: Yesterday saw the Euro print a (near) full-bodied candle, which as a result forced the market deep into a daily demand area visible at 1.1045-1.1127 (surrounds the aforementioned weekly Quasimodo ). In the event that this area is consumed today, further downside will then be expected towards a daily swap area positioned at 1.1016-1.0952 (located just within the weekly demand area mentioned above at 1.0760-1.0988).
4hr Timeframe: The recent descent seen on the Euro was, as far as we can see, likely caused by positive US data (ISM Non-Manufacturing PMI) released yesterday. The strong 4hr close below the aforementioned weekly Quasimodo will likely inspire the sellers to continue pushing this market south today down to at least the mid-level number 1.1050. This level, in our opinion, is a critical juncture for this pair, since a close below this barrier will likely encourage follow-through selling down to a major psychological threshold coming in at 1.1000, which, if you look back to the , you’ll notice this number is located within the daily swap (demand) area at 1.1016-1.0952.
Conversely, if price holds above 1.1050 and rallies higher, this may be the beginnings of a major fakeout of the weekly Quasimodo . However, at this point in time, it is just too early to tell.
Taking all of the above into account, our team’s main focus today will be WATCHING to see how price behaves (if it reaches this low that is) around the 1.1050 mark before we can make any further judgments.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).