Our thought son the EUR this week...
As is shown on the weekly chart, the EUR was seen flexing its financial muscle somewhat last week with price tapping highs of 1.0684. Should we see a similar picture this week, it’s likely that the unit will shake hands with the long-term weekly trendline resistance extended from the low 0.8231. Therefore, do keep an eyeball on this line this week.
Daily supply at 1.0670-1.0623, in our opinion, appears to be on the verge of giving way. Thursday’s candle, as you can see, stabbed through the top edge of this barrier, suggesting stops had likely been triggered. Following this, Friday’s candle printed its third consecutive bullish close to end the week. If indeed we’re correct here, the next objective seen beyond this base, a daily resistance coming in at 1.0710, will likely be brought into view soon.
Moving across to the H4 candles, we can see that the pair opened this morning around the 1.06 handle, 36 pips lower than Friday’s close. Despite this, the bulls seem to be finding their feet and have, at the time of writing, already rallied around 20 pips, strongly indicating this morning’s gap will be filled relatively quickly.
Our suggestions: With H4 supply at 1.0670-1.0639 (located deep within the above noted daily supply) also looking incredibly weak, we feel that given the recent strength shown over the last week, this H4 zone will likely be consumed today and 1.07 may be brought into the picture. As you can probably see, 1.07 sits 10 pips below the aforementioned daily resistance, so we are expecting a reaction to be seen from this angle. Dependent on the time of day and whether the lower-timeframe candles form a sell setup, we may look to sell from this hurdle. A lower-timeframe setup would, in our book, be considered either of the following: a break of demand followed by a retest as supply, a trendline break/retest or simply a collection of well-defined selling wicks around the higher-timeframe sell zone.
In the event that 1.07 is ignored, however, all eyes will then likely be on 1.0796 – a H4 Quasimodo resistance line that’s positioned nearby the tip of a H4 Harmonic (Bat) potential reversal zone at 1.0809. This – coupled with it also being located nearby the long-term weekly trendline resistance highlighted above and the 1.08 handle, makes this area a strong place to watch this week for shorts. In addition to this, one may, should a H4 close be seen above 1.07, also want to consider taking a long on any retest of 1.07 (we’d advise waiting for a H4 bull candle to form following the retest as a way of confirming buyer intent), targeting the above said H4 Harmonic sell zone.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Daily supply at 1.0670-1.0623, in our opinion, appears to be on the verge of giving way. Thursday’s candle, as you can see, stabbed through the top edge of this barrier, suggesting stops had likely been triggered. Following this, Friday’s candle printed its third consecutive bullish close to end the week. If indeed we’re correct here, the next objective seen beyond this base, a daily resistance coming in at 1.0710, will likely be brought into view soon.
Moving across to the H4 candles, we can see that the pair opened this morning around the 1.06 handle, 36 pips lower than Friday’s close. Despite this, the bulls seem to be finding their feet and have, at the time of writing, already rallied around 20 pips, strongly indicating this morning’s gap will be filled relatively quickly.
Our suggestions: With H4 supply at 1.0670-1.0639 (located deep within the above noted daily supply) also looking incredibly weak, we feel that given the recent strength shown over the last week, this H4 zone will likely be consumed today and 1.07 may be brought into the picture. As you can probably see, 1.07 sits 10 pips below the aforementioned daily resistance, so we are expecting a reaction to be seen from this angle. Dependent on the time of day and whether the lower-timeframe candles form a sell setup, we may look to sell from this hurdle. A lower-timeframe setup would, in our book, be considered either of the following: a break of demand followed by a retest as supply, a trendline break/retest or simply a collection of well-defined selling wicks around the higher-timeframe sell zone.
In the event that 1.07 is ignored, however, all eyes will then likely be on 1.0796 – a H4 Quasimodo resistance line that’s positioned nearby the tip of a H4 Harmonic (Bat) potential reversal zone at 1.0809. This – coupled with it also being located nearby the long-term weekly trendline resistance highlighted above and the 1.08 handle, makes this area a strong place to watch this week for shorts. In addition to this, one may, should a H4 close be seen above 1.07, also want to consider taking a long on any retest of 1.07 (we’d advise waiting for a H4 bull candle to form following the retest as a way of confirming buyer intent), targeting the above said H4 Harmonic sell zone.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Отказ от ответственности
Все виды контента, которые вы можете увидеть на TradingView, не являются финансовыми, инвестиционными, торговыми или любыми другими рекомендациями. Мы не предоставляем советы по покупке и продаже активов. Подробнее — в Условиях использования TradingView.