From a technical standpoint, however, the shows that the market surged close to a whopping 300 pips yesterday! This saw the EUR currency breach weekly supply at 1.1532-1.1278, and just miss connecting with an ignored weekly Quasimodo level at 1.1745. Moving down to the , we can see that this recent buying has broken above two major daily Quasimodo resistance levels (1.1385/1.1447), which hit and extended past a daily at 1.1678-1.1606.
Slipping down to the 4hr timeframe, it is clear to see that price has, dare we say it, begun to stabilize at the psychological resistance 1.1700, and is now trading below 1.1600 as we write. With regards to trading this pair today, we feel that this market will likely correct itself. However, is this feeling strong enough to place a trade? The short answer to this is, no. It is very difficult to say how this market will react today to yesterday’s . That is why, especially in times of economic uncertainty, it pays to act in your own best interest by staying on the sidelines!