Weekly view – From the weekly timeframe, we can see that price is now crossing swords with the weekly supply area coming in at 1.1532-1.1278 again. This supply zone is a very significant hurdle in our opinion since if there is a sustained break above this area, our long-term bias on this pair will very likely shift north.
Daily view: Following Monday’s rebound from the daily swap area marked in yellow at 1.1051-1.1000; price went on to print an indecision candle during yesterday’s session. A small advance from this point today will likely see the Euro connect with a nearby daily Quasimodo cluster zone coming in at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area).
4hr view: The 4hr timeframe shows that price faked above the round number 1.1300 into an area of 4hr supply at 1.1397-1.1365 during the early hours of the European open. The sell off from here continued into London and saw price drop to a low of 1.1212, which, as you can see, provided enough support for active buyers to enter the market going into the U.S session.
With the weekly timeframe showing price trading at supply, and the daily timeframe loitering only a few pips below a daily Quasimodo cluster zone (see above), buying this market, unless for a very small intraday trade, is out of the question for us.
As for selling, we will not be interested in shorting this market until price at least enters into the yellow zone (1.1411/1.1378) – an even better area, however, would be the 4hr Quasimodo resistance base seen just above it in green at 1.1443-1.1411. The reason for selecting the aforementioned 4hr areas is simply because these zones are located not only around the aforementioned daily Quasimodo cluster area, but are also sitting deep within the aforementioned weekly supply zone – a fantastic area to be looking for confirmed shorts into the market!
The acceleration of the rally from the 1.11 level is slowing down as there is a bearish RSI divergence forming along with double (and triple) top formation on the 1hr, 4hr and Daily charts for confluence.
I'm looking to take half of the profits at the 1.12 and the remaining at the 1.11 level with stops placed at the 1.14.
What are your brief thoughts on this?
ICmarkets
⋅
Hi LAMBO77,
Here is our most recent report on the Euro
Be careful with your stop placement there as price could rally to take out the orders sitting around the 4hr Quasimodo base at 1.1443-1.1411. Think of all those other stops above the round number 1.1400. This is serious liquidity!
Just our humble opinion my friend. Good luck with your trade :)
IC markets
LAMBO77
⋅
Thank you for your valuable insights ICmarkets :) I currently trade a demo account with you guys using your ctrader platform both on desktop and through the app (thank God you guys are fixing the bugs) and will look to go live once I'm consistent and disciplined in executing my trading strategy.
PB2
⋅
Thanks for posting this.
ICmarkets
⋅
You are very welcome PB2
IC markets
Cityfox
⋅
That's a lot of text, try short and sweet...la da dee da da da
ICmarkets
⋅
Hi CF,
For us, this is short and sweet, you really do not want to see the long version :)
This is turning into a good trade.
The acceleration of the rally from the 1.11 level is slowing down as there is a bearish RSI divergence forming along with double (and triple) top formation on the 1hr, 4hr and Daily charts for confluence.
I'm looking to take half of the profits at the 1.12 and the remaining at the 1.11 level with stops placed at the 1.14.
What are your brief thoughts on this?