Potential buy zone in motion around 1.1445/1.1460
EUR/USD:
Weekly Gain/Loss: +0.64%
Weekly Close: 1.1468
Weekly perspective:
Despite clocking highs of 1.1569 last week, the pair failed to sustain gains and overpower resistance coming in at 1.1465. Taking the form of a mildly respectable bearish pin-bar pattern, price action concluded the week closing just three pips above the said resistance.
Traders are urged not to overlook the current resistance level on this scale, as it boasts strong historical significance dating as far back as early February 2015. In the event we continue to press for lower ground this week, traders’ crosshairs will likely be fixed on demand drawn from 1.1119-1.1212.
Daily perspective:
The key observation on this timeframe is supply at 1.1622-1.1573 and support at 1.1455.
Price action witnessed a sharp change in mood Thursday, turning just north of the aforementioned supply. This, as you can see, weighed on the unit Friday, pulling the market towards noted support which, according to our technical reading, has the ability to hamper selling this week given how well this level held as resistance during the month of November (2018).
H4 perspective:
Shortly after Friday’s US CPI m/m and US core CPI m/m – both in-line with consensus – hit the wires the EUR/USD rotated lower (see M30 chart). Swiftly taking out the 1.15 handle and eventually support at 1.1486 (now acting resistance), price cleared the pathway south for the unit to challenge a nearby AB=CD symmetrical completion point around 1.1460s (black arrows).
Taking into account the AB=CD formation completes just north of January’s opening level at 1.1445, which is positioned just beneath daily support highlighted above at 1.1455 (yellow), traders are likely expecting active buyers to be present here today. The only grumble, of course, is weekly structure trading from resistance at 1.1465.
Areas of consideration:
In light of the above reading, the research team agrees buyers likely reside within the yellow H4 zone mentioned above at 1.1445/1.1460, though points out weekly resistance throws a red flag on the area.
To overcome this, traders are urged to wait for additional confirmation to form before pressing the buy button. A bullish candlestick pattern, for example, would serve well (see chart for a visual image). This not only offers traders a defined entry and exit point, it also shows whether or not buyers are active.
In regards to targets out of 1.1445/1.1460, keep eyes on H4 resistance at 1.1486/1.15 as an initial take-profit zone.
Today’s data points: Limited.
Weekly Gain/Loss: +0.64%
Weekly Close: 1.1468
Weekly perspective:
Despite clocking highs of 1.1569 last week, the pair failed to sustain gains and overpower resistance coming in at 1.1465. Taking the form of a mildly respectable bearish pin-bar pattern, price action concluded the week closing just three pips above the said resistance.
Traders are urged not to overlook the current resistance level on this scale, as it boasts strong historical significance dating as far back as early February 2015. In the event we continue to press for lower ground this week, traders’ crosshairs will likely be fixed on demand drawn from 1.1119-1.1212.
Daily perspective:
The key observation on this timeframe is supply at 1.1622-1.1573 and support at 1.1455.
Price action witnessed a sharp change in mood Thursday, turning just north of the aforementioned supply. This, as you can see, weighed on the unit Friday, pulling the market towards noted support which, according to our technical reading, has the ability to hamper selling this week given how well this level held as resistance during the month of November (2018).
H4 perspective:
Shortly after Friday’s US CPI m/m and US core CPI m/m – both in-line with consensus – hit the wires the EUR/USD rotated lower (see M30 chart). Swiftly taking out the 1.15 handle and eventually support at 1.1486 (now acting resistance), price cleared the pathway south for the unit to challenge a nearby AB=CD symmetrical completion point around 1.1460s (black arrows).
Taking into account the AB=CD formation completes just north of January’s opening level at 1.1445, which is positioned just beneath daily support highlighted above at 1.1455 (yellow), traders are likely expecting active buyers to be present here today. The only grumble, of course, is weekly structure trading from resistance at 1.1465.
Areas of consideration:
In light of the above reading, the research team agrees buyers likely reside within the yellow H4 zone mentioned above at 1.1445/1.1460, though points out weekly resistance throws a red flag on the area.
To overcome this, traders are urged to wait for additional confirmation to form before pressing the buy button. A bullish candlestick pattern, for example, would serve well (see chart for a visual image). This not only offers traders a defined entry and exit point, it also shows whether or not buyers are active.
In regards to targets out of 1.1445/1.1460, keep eyes on H4 resistance at 1.1486/1.15 as an initial take-profit zone.
Today’s data points: Limited.
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