1.09 in sight as potential support...
EUR/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
March, evident from the monthly chart, left behind a long-legged doji indecision candle, with its extremes crossing paths with heavyweight supply at 1.1857/1.1352 (intersects with a long-term trendline resistance [1.6038]) and demand at 1.0488/1.0912.
April, as you can see, spent the best part of the month feasting on the top edge of 1.0488/1.0912, squeezing out a Japanese hammer candlestick pattern, typically viewed as a bullish reversal signal.
May is seen recovering off worst levels, on track to perhaps form another Japanese hammer candlestick pattern out of current demand.
With reference to the primary trend, price has exhibited clear lower peaks and troughs since 2008.
Daily timeframe:
Partially altered from previous analysis -
Pattern traders will note a large potential bearish pennant pattern between 1.1147/1.0635, forming since late March.
Monday’s advance, coupled with an extension on Tuesday, witnessed the upper border of the aforesaid pattern brought into sight, with price action responding in the form of a Japanese shooting star candlestick pattern. Sustained upside may lead to a whipsaw through the pattern’s upper boundary into the 200-day simple moving average (SMA), currently circling 1.1015.
A convincing daily close out of the current pennant pattern structure might give rise to a fresh wave of selling. Breaking lower entails tipping a 78.6% Fib level at 1.0745 and ultimately competing with demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
Technically, selling based off the upper edge of the current daily bearish pennant pattern forced a retreat to H4 demand at 1.0925/1.0897 (prior supply) on Tuesday. A decisive reversal out of the zone could lead to supply at 1.1057/1.1013. Sustained downside from current price, though, may shift focus to fresh demand at 1.0799/1.0827.
H1 timeframe:
Following a pivotal whipsaw through supply at 1.0955/1.0946 heading into Tuesday’s US session, a move that brought supply (prior demand) at 1.0971/1.0990 in focus, saw sellers pick up unfilled sell orders at 1.0955/1.0946 on the way down. This may take the currency pair to the 1.09 handle today, albeit echoing the possibility of a whipsaw to channel support (1.0850 – prior resistance).
Structures of Interest:
1.09, the point which the figure merges with H1 channel support, is an area likely on the watchlist for many intraday price action traders today. 1.09 is sited within the lower boundary of H4 demand at 1.0925/1.0897, and may glean additional support on the back of monthly price seen recovering from demand at 1.0488/1.0912.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
March, evident from the monthly chart, left behind a long-legged doji indecision candle, with its extremes crossing paths with heavyweight supply at 1.1857/1.1352 (intersects with a long-term trendline resistance [1.6038]) and demand at 1.0488/1.0912.
April, as you can see, spent the best part of the month feasting on the top edge of 1.0488/1.0912, squeezing out a Japanese hammer candlestick pattern, typically viewed as a bullish reversal signal.
May is seen recovering off worst levels, on track to perhaps form another Japanese hammer candlestick pattern out of current demand.
With reference to the primary trend, price has exhibited clear lower peaks and troughs since 2008.
Daily timeframe:
Partially altered from previous analysis -
Pattern traders will note a large potential bearish pennant pattern between 1.1147/1.0635, forming since late March.
Monday’s advance, coupled with an extension on Tuesday, witnessed the upper border of the aforesaid pattern brought into sight, with price action responding in the form of a Japanese shooting star candlestick pattern. Sustained upside may lead to a whipsaw through the pattern’s upper boundary into the 200-day simple moving average (SMA), currently circling 1.1015.
A convincing daily close out of the current pennant pattern structure might give rise to a fresh wave of selling. Breaking lower entails tipping a 78.6% Fib level at 1.0745 and ultimately competing with demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
Technically, selling based off the upper edge of the current daily bearish pennant pattern forced a retreat to H4 demand at 1.0925/1.0897 (prior supply) on Tuesday. A decisive reversal out of the zone could lead to supply at 1.1057/1.1013. Sustained downside from current price, though, may shift focus to fresh demand at 1.0799/1.0827.
H1 timeframe:
Following a pivotal whipsaw through supply at 1.0955/1.0946 heading into Tuesday’s US session, a move that brought supply (prior demand) at 1.0971/1.0990 in focus, saw sellers pick up unfilled sell orders at 1.0955/1.0946 on the way down. This may take the currency pair to the 1.09 handle today, albeit echoing the possibility of a whipsaw to channel support (1.0850 – prior resistance).
Structures of Interest:
1.09, the point which the figure merges with H1 channel support, is an area likely on the watchlist for many intraday price action traders today. 1.09 is sited within the lower boundary of H4 demand at 1.0925/1.0897, and may glean additional support on the back of monthly price seen recovering from demand at 1.0488/1.0912.
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