EUR/USD: We anticipate higher prices for the time being.
Weekly Timeframe: The weekly timeframe shows that there is clearly buying interest being seen off of a combined weekly demand/Quasimodo support area (1.22403-1.24420/1.22866) at the moment. However, let’s all not get too excited thinking price is heading to the moon, since a weekly support swap level lurking just above at 1.26229 will likely be resistive. Let’s take a look to see if there’s any shorter-term buying opportunities on the lower timeframes.
Daily Timeframe: Price has broken above a daily supply area seen at 1.25763-1.24794, which as a result has likely cleared the path north up to 1.26213, a small daily support flip level. In our opinion, this has likely confirmed bullish strength from the aforementioned weekly demand/Quasimodo support area for the time being. Let’s see what the 4hr timeframe price structure looks like.
4hr Timeframe: The 4hr timeframe shows that ever since hitting the aforementioned weekly demand/Quasimodo support area, price on the 4hr timeframe has been in an upward trending channel, which so far has been respected. As such, we feel the following scenario may play out today: Once the Europe/London sessions begin, more volume will potentially flow into the market where we anticipate a sell off being seen down to a 4hr demand area coming in at 1.24422-1.24588. We feel that this area is stable enough for a pending buy order to be set around 1.24642, here’s why
• Higher-timeframe currently suggests that price has a little room to the upside before hitting resistance (see above).
• The demand area is relatively free/untouched, and had great momentum north from the base indicating unfilled buy orders may be left there.
• The demand area lines up beautifully with the lower channel limit.
First targets for this trade would likely be 1.25, then assuming price consumes this level, the 1.26310-1.26000 area would be our second. Here is where we expect to see a battle between the buyers and sellers since this area encapsulates the aforementioned weekly support swap level, and a close above here could be an early sign of much higher prices to come!
Buy/sell levels:
• Buy orders: 1.24642 (Predicative stop-loss orders seen at: 1.24358).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: Price has broken above a daily supply area seen at 1.25763-1.24794, which as a result has likely cleared the path north up to 1.26213, a small daily support flip level. In our opinion, this has likely confirmed bullish strength from the aforementioned weekly demand/Quasimodo support area for the time being. Let’s see what the 4hr timeframe price structure looks like.
4hr Timeframe: The 4hr timeframe shows that ever since hitting the aforementioned weekly demand/Quasimodo support area, price on the 4hr timeframe has been in an upward trending channel, which so far has been respected. As such, we feel the following scenario may play out today: Once the Europe/London sessions begin, more volume will potentially flow into the market where we anticipate a sell off being seen down to a 4hr demand area coming in at 1.24422-1.24588. We feel that this area is stable enough for a pending buy order to be set around 1.24642, here’s why
• Higher-timeframe currently suggests that price has a little room to the upside before hitting resistance (see above).
• The demand area is relatively free/untouched, and had great momentum north from the base indicating unfilled buy orders may be left there.
• The demand area lines up beautifully with the lower channel limit.
First targets for this trade would likely be 1.25, then assuming price consumes this level, the 1.26310-1.26000 area would be our second. Here is where we expect to see a battle between the buyers and sellers since this area encapsulates the aforementioned weekly support swap level, and a close above here could be an early sign of much higher prices to come!
Buy/sell levels:
• Buy orders: 1.24642 (Predicative stop-loss orders seen at: 1.24358).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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