EURUSD Technical Outlook (Daily)
EURUSD: the single currency gained 0.38% to a fresh 3-week highs at 1.1401.
EURUSD tested important resistance near 1.1420, a clear break above would ensure a move towards 1.15.
Starting at the top this morning, we can see that the Bulls continue to give the Bears a hard time within the weekly supply area seen at 1.1533-1.1278.
But, considering that this weekly zone has managed to cap the Northside since May 2015, pushing this market higher will not be easy for the Bulls to make happen.
Sliding down to the daily chart, the single currency is trading within daily supply at 1.1446-1.1369. Although the Bears are struggling to hold ground in here, the price has yet to close beyond Monday’s high point at 1.1392.
On the 4-H’s, resistance at 1.1367 now support was taken out during Wednesday’s sessions, allowing price to connect with the 1.14 handle into the close.
There is selling interest forming around this region, but this is not a place would look on favorably to Short. The reason for why comes from seeing the 4-H resistance line just above it at 1.1433, coupled with the 4-H 61.8% Fibo resistance line just below at 1.1418.
Watch for Shorting opps between at 1.1433/1.1418 region Thursday. Waiting for lower frame confirmation to form before pulling the trigger is the safest route to take here since a whipsaw through the 4-H sell zone is likely.
Confirmation could be in the form of an engulf of demand followed by a retest, a trendline break/retest or simply a collection of selling wicks around resistance.
Marks to watch/live orders:
- Buys: Flat (Stop loss: N/A).
- Sells: 1.1433/1.1418 (Confirmation required, Stop loss: dependent on the confirms this area.
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