Following Monday’s push below H4 demand at 1.1121-1.1103, the EUR/USD spent much of yesterday consolidating around the underside of this zone as supply (converges with daily resistance at 1.1122). In light of this rather mellow price action, all eyes remain on the daily support barrier we discussed yesterday at 1.1059.
The 1.1059 daily level is quite notable from a technical perspective on the H4 chart: a 38.2% Fibonacci level at 1.1065, a mid-level support at 1.1050 and a broken Quasimodo line at 1.1043 all converge around this barrier. In addition to this confluence, we like the fact that weekly price has yet to reach supply at 1.1533-1.1278, suggesting the single currency still has room to the upside.
Therefore, the 1.1065/1.1043 H4 area is our pre-determined buy zone going into today’s sessions. We would, however, prefer to see a lower timeframe buy setup form within this region before entering into a buy position here for two reasons. Firstly, the FOMC is set to take the stage today which could potentially cause ripples in this market. Secondly, the rather large psychological support sitting just below at 1.1000 may act as a magnet for price thus pushing the EUR below our buy zone. Nevertheless, should all go to plan and we manage to pin down a position within the above said H4 area, we’d look to target the H4 supply at 1.1121-1.1103 as our first take-profit zone.
Levels to watch/live orders:
• Buys: 1.1065/1.1043 Tentative – confirmation required(Stop loss: dependent on where one confirms this area). • Sells: Flat (Stop loss: N/A).
Kommentare
Fibtree
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Great trade suggestion folks, you should get much more credit and likes for your work. I follow you for some time now and whoever does these analysis knows what he is doing. Totally speaks against the thinking that a broker does not want his clients to win big ;)
ICmarkets
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Thanks for your kind comments Fibtree, so glad it is of use!