Euro long closed – Now short at 1.10013, let's see how it goes!
The EUR/USD pair, as you can see, did indeed continue to rally during yesterday’s sessions. This saw price burst through the 4hr swap level at 1.0854, and connect up with a 4hr supply zone coming in at 1.1034-1.1000. For those who read our previous report on the Euro (blog.icmarkets.com/thursday-23rd-july-daily-technical-outlook-and-review/) you may recall that we had a long position live in the market from 1.0858 (this has now been liquidated at 1.0995 for a very nice 1:3 risk/reward).
Following this, we went on to explain that should price should reach 1.1000, we would then begin looking for confirmed sells into this market since it converged beautifully with the following structures:
1. 4hr supply mentioned above at 1.1034-1.1000.
2. Minor 4hr Harmonic AB=CD bearish pattern which completes at 1.1014 within the aforementioned 4hr supply.
3. Positioned within a daily supply area coming in at 1.1083-1.1006.
4. 50.0% Fibonacci resistance taken from the high 1.1214 to the low 1.0807.
A few hours after closing our long trade, we found a confirmed short on the 15 minute timeframe at 1.10013 off of the back of a very subtle Quasimodo resistance level going into yesterday’s London afternoon session, which, at the time of writing, is just sitting in the green. We have to be honest here though; we’re a little concerned about the 4hr swap level below at 1.0964, as support is being seen from this region. Essentially, for us to feel confident here, we’ll need to see this barrier taken out, where at which point, we’ll look to target 1.0900 which converges with the 50.0% Fibonacci retracement (circled in pink) of swings A-D (minor bearish AB=CD pattern) to end the week.
For anyone else currently short with us, we must be clear here guys that we remain prepared to close this short should bullish support continue to hold as let’s not forget that we have effectively sold into potential weekly buyers from demand at 1.0519-1.0798.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.10013 [Live] (Stop loss: 1.1040).
Following this, we went on to explain that should price should reach 1.1000, we would then begin looking for confirmed sells into this market since it converged beautifully with the following structures:
1. 4hr supply mentioned above at 1.1034-1.1000.
2. Minor 4hr Harmonic AB=CD bearish pattern which completes at 1.1014 within the aforementioned 4hr supply.
3. Positioned within a daily supply area coming in at 1.1083-1.1006.
4. 50.0% Fibonacci resistance taken from the high 1.1214 to the low 1.0807.
A few hours after closing our long trade, we found a confirmed short on the 15 minute timeframe at 1.10013 off of the back of a very subtle Quasimodo resistance level going into yesterday’s London afternoon session, which, at the time of writing, is just sitting in the green. We have to be honest here though; we’re a little concerned about the 4hr swap level below at 1.0964, as support is being seen from this region. Essentially, for us to feel confident here, we’ll need to see this barrier taken out, where at which point, we’ll look to target 1.0900 which converges with the 50.0% Fibonacci retracement (circled in pink) of swings A-D (minor bearish AB=CD pattern) to end the week.
For anyone else currently short with us, we must be clear here guys that we remain prepared to close this short should bullish support continue to hold as let’s not forget that we have effectively sold into potential weekly buyers from demand at 1.0519-1.0798.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.10013 [Live] (Stop loss: 1.1040).
Penafian
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