4hr Harmonic Bat pattern is firmly on our radar today!
Recent events on the EUR/USD currency pair show that price did indeed fake below 1.1021 into a small 4hr decision- point (DP) demand area at 1.0999-1.1013 (as reported it may do) yesterday, rallying to highs of 1.1078 before cascading south post FOMC. This move took price below the aforementioned 4hr (DP) area reaching as low as 1.0965, which, if you look across to the daily scale, you’ll see it also forced price to collide with a daily demand area coming in at 1.0924-1.0978.
With the above in mind, and the fact that price is also still trading above weekly demand at 1.0519-1.0798, our team’s focus for today will be on looking for longs in this market…
We’re currently eyeing a (perfect) 4hr Harmonic bullish Bat pattern which completes at 1.0956-1.0946 seen in green. This potential reversal zone (PRZ) comprises of the following:
1. Deep 0.886% Fibonacci retracement taken from swings A-D.
2. 2.0% B-C projection.
3. Alternate 127.2% AB=CD pattern.
This Harmonic PRZ is certainly somewhere we’d consider entering long from today. Nonetheless, seeing as it is hovering just above a strong looking 4hr demand area at 1.0924-1.0940, we feel that there’s a very good chance price will, if it reaches this low, likely fake below the PRZ before advancing north. That being the case, our team has come to a general consensus that instead of placing a pending buy order directly above the PRZ, we have opted to wait for the lower timeframes to confirm buying strength exists before jumping in – this should avoid any fakeout that may take place.
Levels to watch/live orders:
• Buys: 1.0924/1.0956 Tentative - confirmation required (Stop loss: 1.0919).
• Sells: Flat (Stop loss: N/A).
With the above in mind, and the fact that price is also still trading above weekly demand at 1.0519-1.0798, our team’s focus for today will be on looking for longs in this market…
We’re currently eyeing a (perfect) 4hr Harmonic bullish Bat pattern which completes at 1.0956-1.0946 seen in green. This potential reversal zone (PRZ) comprises of the following:
1. Deep 0.886% Fibonacci retracement taken from swings A-D.
2. 2.0% B-C projection.
3. Alternate 127.2% AB=CD pattern.
This Harmonic PRZ is certainly somewhere we’d consider entering long from today. Nonetheless, seeing as it is hovering just above a strong looking 4hr demand area at 1.0924-1.0940, we feel that there’s a very good chance price will, if it reaches this low, likely fake below the PRZ before advancing north. That being the case, our team has come to a general consensus that instead of placing a pending buy order directly above the PRZ, we have opted to wait for the lower timeframes to confirm buying strength exists before jumping in – this should avoid any fakeout that may take place.
Levels to watch/live orders:
• Buys: 1.0924/1.0956 Tentative - confirmation required (Stop loss: 1.0919).
• Sells: Flat (Stop loss: N/A).
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