We're looking to short the retest of 1.1300...
The value of the EUR currency weakened in aggressive fashion on Wednesday, clearing out bids from both a broken H4 Quasimodo support line at 1.1338 and the psychological support 1.1300. Despite lower than expected U.S. retail sales data, the single currency remained below the 1.1300 line going into the close.
Technically, this recent sell-off should not really come as much of a surprise seeing that price has been lodged within a major area of weekly supply at 1.1533-1.1278 for the past few weeks! Consequent to this move, daily demand at 1.1385-1.1332 was engulfed (now acting supply) which looks to have cleared the rubble for a continuation move down to demand seen at 1.1143-1.1187.
As things stand, our prime focus today will be on shorting this market. Ultimately, what we’re looking for is a retest of 1.1300 as resistance together with lower timeframe confirmation (engulf of demand/break of a trendline etc…). Should this come to fruition, we plan on trailing this position down to H4 demand chalked up at 1.1168-1.1190, which conveniently sits on top of the daily demand mentioned above at 1.1143-1.1187.
Technically, this recent sell-off should not really come as much of a surprise seeing that price has been lodged within a major area of weekly supply at 1.1533-1.1278 for the past few weeks! Consequent to this move, daily demand at 1.1385-1.1332 was engulfed (now acting supply) which looks to have cleared the rubble for a continuation move down to demand seen at 1.1143-1.1187.
As things stand, our prime focus today will be on shorting this market. Ultimately, what we’re looking for is a retest of 1.1300 as resistance together with lower timeframe confirmation (engulf of demand/break of a trendline etc…). Should this come to fruition, we plan on trailing this position down to H4 demand chalked up at 1.1168-1.1190, which conveniently sits on top of the daily demand mentioned above at 1.1143-1.1187.
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