Interesting P.A on the EUR/USD this morning, traders...
Weekly Gain/Loss: -0.42%
Weekly Close: 1.1551
Weekly perspective:
Recently retreating from the underside of a weekly resistance area at 1.1717-1.1862 by way of a bearish pin-bar formation set the stage for further losses last week. Technically speaking, another wave of selling may be in store this week, given the next downside target on this scale is fixed around a demand base coming in at 1.1312-1.1445.
Daily perspective:
Demand at 1.1530-1.1600 elbowed its way into the spotlight in recent trade, following a selloff from nearby resistance plotted at 1.1732 (positioned within the lower limits of the aforementioned weekly resistance area). As shown on the chart, the pair struggled to print anything meaningful to the upside from here, and concluded the week chalking up a near-full-bodied bearish candle that closed at its lows.
Outside of this demand, the next area of interest can be seen around demand penciled in at 1.1312-1.1368.
H4 perspective:
Following the release of Friday’s US non-farm payrolls report for August, the euro fell sharply against its US counterpart. The US economy added 201k jobs in the month, slightly above the forecasted 191k.
Friday’s move lower, as you can see, obliterated the 1.16 handle and possibly opened the gates for an approach towards an area of support marked in green at 1.15/1.1530 (comprised of a round number at 1.15, a support barrier with reasonably strong history at 1.1511, a 50.0% support value at 1.1518 and a double-bottom support at 1.1530). This, in terms of the overall technical picture, is likely the last line of defense for the current daily demand base, as a break of the H4 support zone suggests the market may head in the direction of weekly demand mentioned above at 1.1312-1.1445.
Areas of consideration:
The green H4 support area highlighted above at 1.15/1.1530 is likely on the radar for many intraday players today/early this week for possible longs. Although this area boasts relatively attractive confluence, traders are urged to consider the bigger picture here. With the threat of further selling being seen from the weekly timeframe, and a somewhat fragile daily demand zone, buyers may struggle to keep hold of the current H4 support area.
With this in mind, we see two possible options:
1. Wait and see how H4 price action responds once the unit tests 1.15/1.1530. A tasty-looking bullish candlestick formation printed from within the area not only indicates the pair may want to retest the underside of 1.16, it’d also provides traders a location to position stops along with a level to enter.
2. A H4 close beneath 1.15/1.1530 suggests the market probably wants to shake hands with the top edge of weekly demand at 1.1445. This – coupled with a retest to the underside of 1.15 – is likely enough to stir sellers into action and bring price lower. Whether or not one chooses to wait for candlestick confirmation here, is, of course, trader dependent.
Weekly Close: 1.1551
Weekly perspective:
Recently retreating from the underside of a weekly resistance area at 1.1717-1.1862 by way of a bearish pin-bar formation set the stage for further losses last week. Technically speaking, another wave of selling may be in store this week, given the next downside target on this scale is fixed around a demand base coming in at 1.1312-1.1445.
Daily perspective:
Demand at 1.1530-1.1600 elbowed its way into the spotlight in recent trade, following a selloff from nearby resistance plotted at 1.1732 (positioned within the lower limits of the aforementioned weekly resistance area). As shown on the chart, the pair struggled to print anything meaningful to the upside from here, and concluded the week chalking up a near-full-bodied bearish candle that closed at its lows.
Outside of this demand, the next area of interest can be seen around demand penciled in at 1.1312-1.1368.
H4 perspective:
Following the release of Friday’s US non-farm payrolls report for August, the euro fell sharply against its US counterpart. The US economy added 201k jobs in the month, slightly above the forecasted 191k.
Friday’s move lower, as you can see, obliterated the 1.16 handle and possibly opened the gates for an approach towards an area of support marked in green at 1.15/1.1530 (comprised of a round number at 1.15, a support barrier with reasonably strong history at 1.1511, a 50.0% support value at 1.1518 and a double-bottom support at 1.1530). This, in terms of the overall technical picture, is likely the last line of defense for the current daily demand base, as a break of the H4 support zone suggests the market may head in the direction of weekly demand mentioned above at 1.1312-1.1445.
Areas of consideration:
The green H4 support area highlighted above at 1.15/1.1530 is likely on the radar for many intraday players today/early this week for possible longs. Although this area boasts relatively attractive confluence, traders are urged to consider the bigger picture here. With the threat of further selling being seen from the weekly timeframe, and a somewhat fragile daily demand zone, buyers may struggle to keep hold of the current H4 support area.
With this in mind, we see two possible options:
1. Wait and see how H4 price action responds once the unit tests 1.15/1.1530. A tasty-looking bullish candlestick formation printed from within the area not only indicates the pair may want to retest the underside of 1.16, it’d also provides traders a location to position stops along with a level to enter.
2. A H4 close beneath 1.15/1.1530 suggests the market probably wants to shake hands with the top edge of weekly demand at 1.1445. This – coupled with a retest to the underside of 1.15 – is likely enough to stir sellers into action and bring price lower. Whether or not one chooses to wait for candlestick confirmation here, is, of course, trader dependent.
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