Interesting confluence for a long seen on the euro...
Weekly gain/loss: - 40 pips
Weekly closing price: 1.1777
Over the course of last week’s trading, the EUR/USD maintained its position above weekly support formed at 1.1714. Although price failed to print fresh highs, we did see a weekly bullish inside bar formation take shape. This will likely interest candlestick enthusiasts, given weekly structure and the underlying trend.
The story on the daily timeframe, however, shows that Friday’s movement chalked up a near-full-bodied bearish candle that wiped out Thursday’s and most of Wednesday’s gains. What’s more, this occurred just ahead of resistance at 1.1878, which happens to fuse nicely with channel resistance etched from the high 1.2092. In the event that further selling takes place this week, demand at 1.1612-1.1684, an area that’s held its own on since early August, will likely be challenged (sited just underneath the said weekly support).
Friday’s downside move, as can be seen on the H4 timeframe, dragged the pair sub 1.18 in early US trading and eventually took out October’s opening level seen nearby at 1.1788. According to H4 structure, further downside could be on the cards, but should we be looking to sell?
Suggestions: To be quite frank, we don’t believe this to be a sellers’ market right now, due to what’s been noted on the weekly timeframe. With that being said though, a 50-pip selloff is what we’re looking for! Here’s why. The green area on the H4 chart at 1.1689/1.1715 (comprised of a Harmonic Gartley completion point at around 1.1708/1.1715, the 1.17 handle, a Quasimodo support at 1.1696, a 127.2% Fib ext. at 1.1689, the aforesaid weekly support and also located just above the top edge of daily demand at 1.1684) is an attractive base for a long. Assuming that you enter within the green area (the 1.17 handle looks nice) and set stops below the X point of the Harmonic pattern (1.1669), this is a high-probability setup, and one that we will have no hesitation in taking should the opportunity arise.
Data points to consider: No high-impacting news events scheduled today.
Weekly closing price: 1.1777
Over the course of last week’s trading, the EUR/USD maintained its position above weekly support formed at 1.1714. Although price failed to print fresh highs, we did see a weekly bullish inside bar formation take shape. This will likely interest candlestick enthusiasts, given weekly structure and the underlying trend.
The story on the daily timeframe, however, shows that Friday’s movement chalked up a near-full-bodied bearish candle that wiped out Thursday’s and most of Wednesday’s gains. What’s more, this occurred just ahead of resistance at 1.1878, which happens to fuse nicely with channel resistance etched from the high 1.2092. In the event that further selling takes place this week, demand at 1.1612-1.1684, an area that’s held its own on since early August, will likely be challenged (sited just underneath the said weekly support).
Friday’s downside move, as can be seen on the H4 timeframe, dragged the pair sub 1.18 in early US trading and eventually took out October’s opening level seen nearby at 1.1788. According to H4 structure, further downside could be on the cards, but should we be looking to sell?
Suggestions: To be quite frank, we don’t believe this to be a sellers’ market right now, due to what’s been noted on the weekly timeframe. With that being said though, a 50-pip selloff is what we’re looking for! Here’s why. The green area on the H4 chart at 1.1689/1.1715 (comprised of a Harmonic Gartley completion point at around 1.1708/1.1715, the 1.17 handle, a Quasimodo support at 1.1696, a 127.2% Fib ext. at 1.1689, the aforesaid weekly support and also located just above the top edge of daily demand at 1.1684) is an attractive base for a long. Assuming that you enter within the green area (the 1.17 handle looks nice) and set stops below the X point of the Harmonic pattern (1.1669), this is a high-probability setup, and one that we will have no hesitation in taking should the opportunity arise.
Data points to consider: No high-impacting news events scheduled today.
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