ICmarkets

Our take on the Euro's movements, anyone seeing different??

FX:EURUSD   Euro Fx/U.S. Dollar
552 5 10
Weekly view: The weekly timeframe shows that selling interest is currently being seen from deep within a weekly supply area coming in at 1.1449-1.1278. The past two months have been the most we’ve seen the Euro             rally since price began its descent back in May 2014. In spite of this, our long-term bias still remains south and will continue to do so until we see a convincing push above the aforementioned weekly supply area.

Daily view: A beautiful to-the-pip reaction has been seen from the Harmonic resistance zone ( Bat pattern ) coming in at 1.1516/1.1376. Assuming that follow-through selling is seen from here today, its likely prices could retest the combined weekly/daily swap area at 1.1096/ 1.1051-1.0918 once again.

4hr view: Prior to yesterday’s sell off, we can see that price faked above 4hr supply at 1.1387-1.1346, missing the psychological number 1. 1400             by a mere 10 pips! From here the Euro             proceeded to decline in value, effortlessly breaking through 1.1300 and testing 4hr demand coming in at 1.1207-1.1233. Given that price is currently trading from overall resistance on the higher timeframes at the moment (see above), we feel there’s a chance that the current 4hr demand area could struggle to hold during today’s sessions. In addition to this, we’re seeing temporary resistance form just above this area around the 1.1265 mark, which is holding firm despite price trading around demand. On the flip side, this 4hr demand area could potentially force the market into temporary consolidation between here and 1.1265 ahead of the mighty NFP announcement which is due to be released later on.

With everything take into consideration, our team has no interest in buying this market due to what the higher-timeframe picture is telling us (see above). Although selling would be more favorable from a daily and weekly technical standpoint, shorting into 4hr demand is just something we cannot condone. Therefore, we’ve opted to remain flat until at least after the NFP data has been released.

Levels to watch – live orders:

• Buys: Flat (Predicative stop-loss orders seen at: N/A).

• Sells: Flat (Predicative stop-loss orders seen at: N/A).
Cityfox
2 years ago
I'm long
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Excellent analysis, couldn't agree more. Anticipating a H&S pattern to come in on 4H, we will see.
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Bananenboom20
2 years ago
I think your right mate. made the same calculations. good job!
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Hi IC, I really look forward to your update on this pair next week. If it is possible to make a request, any chance for a similar analysis on GBPNZD... Looks like a nice bottom on the monthly and incoming significant resistance, could be a pair to watch with UK news last week and NZ Gov trying to devalue their currency,.. I look forward to hearing from you.
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ICmarkets PRO Cryptoelite
2 years ago
Hi Skuffone,

At present we only cover 8 pairs in total, and unfortunately do not follow the GBP/NZD pair. We'll take a look, and if anything interesting is seen, we'll make a post :)

IC markets.
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