1.1350/1.1332 tasty for possible short opportunities, traders.
EUR/USD:
Weekly Gain/Loss: -0.77%
Weekly Close: 1.1303
Weekly perspective:
By way of a reasonably strong-looking bearish engulfing configuration forming just south of resistance priced in at 1.1465 (brings with it a nearby cloned trend line resistance [extended from the high 1.2413]), the EUR/USD concluded the week in negative territory. Should further downside surface this week, demand plotted at 1.1119-1.1212 is the next area in the firing range.
Daily perspective:
Closer inspection on the daily timeframe adds a proven base of resistance circulating around the 1.1455 region, which happens to closely converge with two Fibonacci resistances: a 61.8% and a 38.2% at 1.1469 and 1.1443, respectively.
As can be seen on the chart, the area capped upside three times in November and also held firm last Monday. Scope for additional selling is visible, targeting demand seen at 1.1171-1.1220 (glued to the top edge of the aforementioned weekly demand zone).
H4 perspective:
Led by Friday’s dismal Eurozone PMI readings, the pair overthrew its 1.13 handle in strong fashion. Fuelled by relatively upbeat US retail sales data, the euro ceded further ground to its US counterpart in early US hours, consequently testing nearby support coming in at 1.1270. Although price action mildly pared losses from this region and marginally reclaimed 1.13 to the upside, the day finished at -0.47%.
Directly above 1.13, our technical studies observe nearby resistance in the form of November’s opening level at 1.1314. Above here, we also have two merging trend line resistances (extended from 1.1255/1.1442) close by, which fuse with a 38.2% Fibonacci resistance at 1.1335 and a 50.0% resistance at 1.1332. In addition to this, it is also worth penciling in another layer of resistance seen nearby at 1.1350 in the shape of December’s opening level.
Areas of consideration:
Having seen both weekly and daily timeframes emphasize the possibility of additional selling this week, the research team notes possible shorting opportunities on the H4 timeframe between December’s opening level at 1.1350 and the two aforesaid converging trend line resistances/Fibonacci resistances (green – 1.1350/1.1332). A sell from here with stop-loss orders tucked a couple of pips beyond the zone is, according to the overall technical picture, a high-probability setup. Despite nearby H4 supports, the ultimate downside target from here falls in around the top edge of daily demand at 1.1220.
Today’s data points: Limited.
Weekly Gain/Loss: -0.77%
Weekly Close: 1.1303
Weekly perspective:
By way of a reasonably strong-looking bearish engulfing configuration forming just south of resistance priced in at 1.1465 (brings with it a nearby cloned trend line resistance [extended from the high 1.2413]), the EUR/USD concluded the week in negative territory. Should further downside surface this week, demand plotted at 1.1119-1.1212 is the next area in the firing range.
Daily perspective:
Closer inspection on the daily timeframe adds a proven base of resistance circulating around the 1.1455 region, which happens to closely converge with two Fibonacci resistances: a 61.8% and a 38.2% at 1.1469 and 1.1443, respectively.
As can be seen on the chart, the area capped upside three times in November and also held firm last Monday. Scope for additional selling is visible, targeting demand seen at 1.1171-1.1220 (glued to the top edge of the aforementioned weekly demand zone).
H4 perspective:
Led by Friday’s dismal Eurozone PMI readings, the pair overthrew its 1.13 handle in strong fashion. Fuelled by relatively upbeat US retail sales data, the euro ceded further ground to its US counterpart in early US hours, consequently testing nearby support coming in at 1.1270. Although price action mildly pared losses from this region and marginally reclaimed 1.13 to the upside, the day finished at -0.47%.
Directly above 1.13, our technical studies observe nearby resistance in the form of November’s opening level at 1.1314. Above here, we also have two merging trend line resistances (extended from 1.1255/1.1442) close by, which fuse with a 38.2% Fibonacci resistance at 1.1335 and a 50.0% resistance at 1.1332. In addition to this, it is also worth penciling in another layer of resistance seen nearby at 1.1350 in the shape of December’s opening level.
Areas of consideration:
Having seen both weekly and daily timeframes emphasize the possibility of additional selling this week, the research team notes possible shorting opportunities on the H4 timeframe between December’s opening level at 1.1350 and the two aforesaid converging trend line resistances/Fibonacci resistances (green – 1.1350/1.1332). A sell from here with stop-loss orders tucked a couple of pips beyond the zone is, according to the overall technical picture, a high-probability setup. Despite nearby H4 supports, the ultimate downside target from here falls in around the top edge of daily demand at 1.1220.
Today’s data points: Limited.
Penafian
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