During the course of yesterday’s sessions, traders were seen attempting to bid the EUR currency higher from the 1.1000 handle, but failed miserably reaching only a high of 1.1034 on the day. Shortly after this, the EUR plummeted on the back of Yellen’s testimony before congress, which as you can see eventually reached the 4hr demand area at 1.0886-1.0924.
With downward pressure now being seen on higher timeframe support structures (ascending weekly trendline taken from the low 1.0468/daily demand area coming in at 1.0886-1.0978) at the moment, a ‘make or break’ decision clearly needs to be made on this pair.
Given the points made above, we have absolutely no interest in selling this pair at this time. All eyes are currently on the aforementioned 4hr demand zone at 1.0886-1.0924 due to the location of price on the higher timeframe picture (see above). We believe strong bids could come into the market and thrust this pair north. For us to be given the green light to buy this pair here, however, we’ll need to be some very attractive lower timeframe buying strength present itself.
Levels to watch/live orders:
• Buys: 1.0886-1.0924 (Stop loss: 1.0879).
• Sells: Flat (Stop loss: N/A).
With downward pressure now being seen on higher timeframe support structures (ascending weekly trendline taken from the low 1.0468/daily demand area coming in at 1.0886-1.0978) at the moment, a ‘make or break’ decision clearly needs to be made on this pair.
Given the points made above, we have absolutely no interest in selling this pair at this time. All eyes are currently on the aforementioned 4hr demand zone at 1.0886-1.0924 due to the location of price on the higher timeframe picture (see above). We believe strong bids could come into the market and thrust this pair north. For us to be given the green light to buy this pair here, however, we’ll need to be some very attractive lower timeframe buying strength present itself.
Levels to watch/live orders:
• Buys: 1.0886-1.0924 (Stop loss: 1.0879).
• Sells: Flat (Stop loss: N/A).
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