Well done to those who bought 1.13/1.1314 – further buying?
EUR/USD:
In Wednesday’s briefing the piece underlined a strong interest in the H4 support area seen at 1.13/1.1314 as a possible buy zone (green – comprised of November’s opening level at 1.1314, a trend line support [taken from the low 1.1215], a 78.6% Fibonacci support value at 1.1304, a round number at 1.13 and a complementing AB=CD bullish pattern [black arrows]).
Reinforced by a softer US dollar across the board and more convergence between Italy and the EU on 2019 budget lines, the H4 candles responded beautifully from 1.13/1.1314 Wednesday. Firmly breaking a two-day bearish phase and reaching highs of 1.1387, the pair concluded the day overthrowing December’s opening level at 1.1350, consequently exposing 1.14. Well done to any of our readers who managed to jump aboard this move.
In terms of the higher-timeframe picture, weekly flow remains languishing beneath resistance priced in at 1.1465 that brings with it a nearby cloned trend line resistance (extended from the high 1.2413). It may also interest some traders to note the current weekly candle is emphasizing a somewhat indecisive tone at the moment. A closer reading on the daily timeframe adds a proven base of resistance circulating around the 1.1455 region. What’s appealing here, other than the fact the level capped upside three times in November and is closely linked to the weekly resistance mentioned above at 1.1465, is the merging Fibonacci resistances: a 61.8% and a 38.2% at 1.1469 and 1.1443, respectively.
Areas of consideration:
Having seen room for buyers to extend higher on all three timeframes, a retest play off December’s opening level mentioned above at 1.1350 may be in the offing today (red arrows), targeting 1.14 as the initial take-profit zone (ideal place to think about liquidating partial profits and reducing risk to breakeven), followed by daily resistance at 1.1455 and then weekly resistance at 1.1465.
As for entry, waiting for additional candlestick confirmation to form and entering based on the selected structure is an option, or traders could simply enter at 1.1350 and position stop-loss orders 15-20 pips beneath the level. The former is considered the more conservative route.
Today’s data points: EUR Main Refinancing Rate; ECB Press Conference.
In Wednesday’s briefing the piece underlined a strong interest in the H4 support area seen at 1.13/1.1314 as a possible buy zone (green – comprised of November’s opening level at 1.1314, a trend line support [taken from the low 1.1215], a 78.6% Fibonacci support value at 1.1304, a round number at 1.13 and a complementing AB=CD bullish pattern [black arrows]).
Reinforced by a softer US dollar across the board and more convergence between Italy and the EU on 2019 budget lines, the H4 candles responded beautifully from 1.13/1.1314 Wednesday. Firmly breaking a two-day bearish phase and reaching highs of 1.1387, the pair concluded the day overthrowing December’s opening level at 1.1350, consequently exposing 1.14. Well done to any of our readers who managed to jump aboard this move.
In terms of the higher-timeframe picture, weekly flow remains languishing beneath resistance priced in at 1.1465 that brings with it a nearby cloned trend line resistance (extended from the high 1.2413). It may also interest some traders to note the current weekly candle is emphasizing a somewhat indecisive tone at the moment. A closer reading on the daily timeframe adds a proven base of resistance circulating around the 1.1455 region. What’s appealing here, other than the fact the level capped upside three times in November and is closely linked to the weekly resistance mentioned above at 1.1465, is the merging Fibonacci resistances: a 61.8% and a 38.2% at 1.1469 and 1.1443, respectively.
Areas of consideration:
Having seen room for buyers to extend higher on all three timeframes, a retest play off December’s opening level mentioned above at 1.1350 may be in the offing today (red arrows), targeting 1.14 as the initial take-profit zone (ideal place to think about liquidating partial profits and reducing risk to breakeven), followed by daily resistance at 1.1455 and then weekly resistance at 1.1465.
As for entry, waiting for additional candlestick confirmation to form and entering based on the selected structure is an option, or traders could simply enter at 1.1350 and position stop-loss orders 15-20 pips beneath the level. The former is considered the more conservative route.
Today’s data points: EUR Main Refinancing Rate; ECB Press Conference.
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