Where we are on the Euro at the moment...
Weekly recap: The EUR currency plunged a whopping 326 pips last week. This saw price slice through the weekly ascending trendline (forms lower limit of recent symmetrical triangle formation) taken from the low 1.0468 and close on its lows at 1.0827 just above weekly demand coming in at 1.0519-1.0798. Alongside this, we also saw daily action take out daily demand at 1.0886-1.0978 and close the week seven pips above a daily swap level at 1.0820.
Moving down to the 4hr scale, Friday’s sessions reveal price rallied from a low of 1.0854 and crossed swords with round number resistance at 1.0900, which hammered the Euro home south to end the week deep within a 4hr Harmonic AB=CD potential reversal zone (PRZ) at 1.0847-1.0800.
Going forward, Sunday’s open 1.0828 shows little change was seen over the weekend. As a result, price is still sitting within the aforementioned 4hr Harmonic AB=CD (PRZ), which so happens to converge with the following structures:
1. Encapsulates the daily swap level 1.0820.
2. The lower limit of our AB=CD pattern has been expanded slightly to include the 1.0800 round number which also represents the top-side of a weekly demand area at 1.0519-1.0798.
3. 4hr trendline convergence from the low 1.0461.
4. Fibonacci extension value 1.272%.
Therefore, as long as our analysis is correct, the EUR currency should appreciate today/this week. Nevertheless, as tasty as this zone may look, there may still be a fakeout below the 1.0800 handle to accumulate liquidity to push this market higher. For this reason, we are not going to be entering at market; we’re going to WAIT for the lower timeframes (15 min/60 min) to confirm buying strength exists within this highly confluent 4hr Harmonic structure before risking capital to this idea.
Levels to watch/live orders:
• Buys: 1.0847/1.0800 Tentative – confirmation required (Stop loss: 1.0785).
• Sells: Flat (Stop loss: N/A).
Moving down to the 4hr scale, Friday’s sessions reveal price rallied from a low of 1.0854 and crossed swords with round number resistance at 1.0900, which hammered the Euro home south to end the week deep within a 4hr Harmonic AB=CD potential reversal zone (PRZ) at 1.0847-1.0800.
Going forward, Sunday’s open 1.0828 shows little change was seen over the weekend. As a result, price is still sitting within the aforementioned 4hr Harmonic AB=CD (PRZ), which so happens to converge with the following structures:
1. Encapsulates the daily swap level 1.0820.
2. The lower limit of our AB=CD pattern has been expanded slightly to include the 1.0800 round number which also represents the top-side of a weekly demand area at 1.0519-1.0798.
3. 4hr trendline convergence from the low 1.0461.
4. Fibonacci extension value 1.272%.
Therefore, as long as our analysis is correct, the EUR currency should appreciate today/this week. Nevertheless, as tasty as this zone may look, there may still be a fakeout below the 1.0800 handle to accumulate liquidity to push this market higher. For this reason, we are not going to be entering at market; we’re going to WAIT for the lower timeframes (15 min/60 min) to confirm buying strength exists within this highly confluent 4hr Harmonic structure before risking capital to this idea.
Levels to watch/live orders:
• Buys: 1.0847/1.0800 Tentative – confirmation required (Stop loss: 1.0785).
• Sells: Flat (Stop loss: N/A).
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