Not seeing a lot to hang our hat on – anyone seeing different?
Weekly gain/loss: + 161 pips
Weekly closing price: 1.1919
The EUR was seen flexing its financial muscle last week, as weekly action crossed above resistance at 1.1871. Providing that the bulls can continue to dominate above this line, the next port of call will likely be the resistance line printed at 1.2044 (not seen on the screen). Something else that’s worth noting is the USDX failed to breach support planted at 11854, while the EUR, as we already know, managed to push above its correlating resistance. Could this signify that the recent push north lacks energy?
The story on the daily timeframe shows that the recent move north largely took place on Friday, resulting in a push up into a supply zone pegged at 1.1968-1.1862. Also worth mentioning is the daily demand on the USDX at 11899-11932, which was brought into play due to Friday’s selloff. This area held the dollar higher in the early stages of last week and therefore we could see history repeat itself. A push north from here would highly likely translate into a push lower from the daily supply currently seen on the EUR.
A quick recap of Friday’s movement on the H4 timeframe reveals that the single currency punched above August’s opening level at 1.1830, following Yellen’s speech. After a minor spell of consolidation, the pair was further bid on comments made by Draghi regarding global and European recovery, consequently ending the day above the 1.19 handle. This could, technically speaking, set the stage for price to approach resistance located at 1.1962.
Suggestions: So, let’s just run through what we have here. Weekly price suggests further buying could be on the cards. Daily price shows the unit trading around the upper edge of supply at 1.1968-1.1862. And H4 price points to a possible move up to a nearby resistance at 1.1962, which happens to be planted within the upper edge of the said daily supply.
Assuming 1.19 holds form, the noted H4 resistance will likely be bought into the picture either today or tomorrow. A long based on this is not something we’d be comfortable with given the current daily supply. A sell trade from the H4 resistance line, however, is tempting given its location within the daily supply. Though, selling into potential weekly flow above resistance and the pair’s underlying trend is also not something we’d be comfortable participating in.
With the above points in mind, we will remain flat today and look to reassess structure going into Tuesday’s open.
Data points to consider: No high-impacting news events scheduled today.
Weekly closing price: 1.1919
The EUR was seen flexing its financial muscle last week, as weekly action crossed above resistance at 1.1871. Providing that the bulls can continue to dominate above this line, the next port of call will likely be the resistance line printed at 1.2044 (not seen on the screen). Something else that’s worth noting is the USDX failed to breach support planted at 11854, while the EUR, as we already know, managed to push above its correlating resistance. Could this signify that the recent push north lacks energy?
The story on the daily timeframe shows that the recent move north largely took place on Friday, resulting in a push up into a supply zone pegged at 1.1968-1.1862. Also worth mentioning is the daily demand on the USDX at 11899-11932, which was brought into play due to Friday’s selloff. This area held the dollar higher in the early stages of last week and therefore we could see history repeat itself. A push north from here would highly likely translate into a push lower from the daily supply currently seen on the EUR.
A quick recap of Friday’s movement on the H4 timeframe reveals that the single currency punched above August’s opening level at 1.1830, following Yellen’s speech. After a minor spell of consolidation, the pair was further bid on comments made by Draghi regarding global and European recovery, consequently ending the day above the 1.19 handle. This could, technically speaking, set the stage for price to approach resistance located at 1.1962.
Suggestions: So, let’s just run through what we have here. Weekly price suggests further buying could be on the cards. Daily price shows the unit trading around the upper edge of supply at 1.1968-1.1862. And H4 price points to a possible move up to a nearby resistance at 1.1962, which happens to be planted within the upper edge of the said daily supply.
Assuming 1.19 holds form, the noted H4 resistance will likely be bought into the picture either today or tomorrow. A long based on this is not something we’d be comfortable with given the current daily supply. A sell trade from the H4 resistance line, however, is tempting given its location within the daily supply. Though, selling into potential weekly flow above resistance and the pair’s underlying trend is also not something we’d be comfortable participating in.
With the above points in mind, we will remain flat today and look to reassess structure going into Tuesday’s open.
Data points to consider: No high-impacting news events scheduled today.
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