EUR/USD: Technical outlook and review...

FX:EURUSD   Euro / U.S. Dollar
327 0
The EUR currency declined in value for a second consecutive day yesterday, losing a little over 200 pips going into yesterday’s close 1.1310. This move saw several 4hr technical levels wiped out during its onslaught, ending with price spiking through 1.1300 and missing the 4hr demand area below it at 1.1239-1.1286 by a cat’s whisker. Although price is currently trading at a potential buy zone, the field of vision from here looks rather cramped…

To start with, there is immediate 4hr supply lurking just above current price at 1.1346-1.1319. Furthermore, both the weekly and daily timeframes show there is room to continue diving south. The nearest support, as far as we can see, comes in from the daily scale at an ignored daily Quasimodo level at1.1233 (positioned just below the aforementioned 4hr demand area). This, in itself, could very well tempt well-funded traders to fake below the current 4hr demand zone and take out stops!

Therefore, given the points made above, we shall not be looking to buy this market today unless price fakes below and closes back within the current 4hr demand. Lower timeframe confirmation will still be needed following a fakeout here, however, simply because, as we mentioned above, the path south on the weekly timeframe looks clean down to weekly demand at 1.0519-1.0798. Should this long trade come to fruition, partial profits will be quickly taken at 1.1300. It would only be once/if price closes above and retests this number as support, would we then feel safe to move our stop to breakeven. It will be interesting to see what the day brings!

Levels to watch/live orders:

• Buys: Watch for a fakeout below 4hr demand at then look to enter long with lower timeframe confirmation.
• Sells: Flat (Stop loss: N/A).

Get real-time trading updates at our official Telegram group : https://t.me/ICMarketsroom
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out