ICmarkets
Short

Beautiful price action being seen on the EUR/USD right now!

FX:EURUSD   Euro Fx/U.S. Dollar
504 0 6
The EUR/USD             market, as you can see, plunged from psychological resistance 1.1200 and crossed swords with mid-number support 1.1150 during the beginning of London trade yesterday. It was from here, the U.S. open, that we saw the EUR currency correct itself and aggressively surge close to 100 pips up to the underside of 1.1250.

In view of price now trading below not only 1.1250 but also a ignored Quasimodo resistance just above it at 1.1257, would we consider this a stable enough platform to sell from today? 100% we would! Supporting the aforementioned resistances are the following structures:

1. A Harmonic AB=CD approach that completes around the 1.1250 mark.
2. 78.6 Fib resistance level at 1.1254.
3. One could also consider this a nearly complete Harmonic Bat pattern , hence the defining limit of our sell zone being the 88.6% Fib level at 1.1270.
4. The base of a daily supply area at 1.1329-1.1269 sits on top of the above said 4hr structures.
5. And, finally, we mustn’t forget that price still remains loitering around the underside of weekly supply at 1.1532-1.1278.

Taking into account the confluence seen in this market today, we’re confident a rebound will likely be seen from the 1.1250/1.1270 region. That being said though, there is always the chance the big boys may edge price into stops above the Harmonic sell zone into the jaws of the aforementioned daily supply. Therefore, we would recommend waiting for lower timeframe price action to confirm strength exists here before placing a trade – just to be on the safe side!

Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1250/1.1270 Tentative- confirmation required (Stop loss: dependent on where one confirms this area).

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