Weekly closing price: 1.1787
Over the course of last week’s trading, the single currency extended its bounce from weekly support at 1.1616. This, as you can see, lifted weekly price up to a supply base coming in at 1.1880-1.1777, which has so far held ground. A violation of this area, however, would likely bring the weekly seen at 1.2044 into the spotlight. Don’t underestimate this barrier, as it has a solid history behind it!
Moving ourselves down to the , we can see that price came within touching distance of a plotted at 1.1878 on Wednesday and managed to chalk up a nice-looking selling wick. Be that as it may, this move was (and still is) somewhat marred by the fact that there is a nearby cloned support taken from the high 1.2092.
A quick recap of Friday’s action on the H4 timeframe shows that the unit peaked at a high of 1.1821 during the early hours of trading. Following this, price cracked through bids at 1.18 and challenged October’s opening level at 1.1788, which held firm despite multiple attempts to break lower. As 1.18 also proved a worthy resistance, the euro ended the week revisiting October’s opening level.
Suggestions: Looking for longs above 1.18 would, in our technical view, be considered a risky play given the fact that this would entail buying into a weekly supply. Along similar lines, a violation of October’s opening level is also problematic for sellers. Besides having to contend with the nearby H4 support extended from the high 1.1875, the candles would also be clashing with the aforementioned daily supports!
All things considered, this is a relatively restricted market at the moment. For that reason, opting to stand on the sidelines may very well be the best path to take today.