![]() ![]() ![]() With respect to resistance, the only level of interest right now sits at 1.3358, capping upside since mid-June 2019. Another layer of support to keep an eye on this week, though, is 1.2769, which happens to merge closely with trend line support, pencilled in from the low 1.1958 and the 200-day SMA (orange – 1.2687). The 50-day SMA (blue – 1.2982) remains reasonably dominant support on this timeframe. The fact we’re holding the current trend line, though, implies we might see a push lower to the 2019 yearly opening level at 1.2739, consequently tripping sell stops from any traders long the aforementioned demand zone. ![]() Price also recently reclaimed long-standing trend line resistance, pencilled in from the high 1.5930, and retested the descending level in the shape of a shooting star candlestick pattern.īuyers are attempting to defend nearby demand around the 1.2939 region (black arrow), seduced by the recent break of the notable high at 1.3380 (red arrow). Sellers strengthened their grip off the 2018 yearly opening level drawn from 1.3503 three weeks back. A move lower from 1.12 may target the noted local daily channel support as the initial port of call, followed by the 1.11 handle on the H4 timeframe.Ī fakeout formed by way of a H4 bearish candlestick configuration is also something worth watching out for at 1.12, a shooting star candlestick pattern, for example (see chart for a visual). A decisive close beneath 1.12 from 1.1222 could be considered a healthy sell signal, knowing we have local buy stops above 1.12 acting as liquidity to sell into, along with weekly sellers potentially looking to explore lower ground. A possible scenario, therefore, may be a ‘run of stops’ (a fakeout) through 1.12 to 1.1222 on the H4 timeframe. All in all, the Fed’s document contained little surprise, having limited impact across financial markets.Īs weekly price tests channel resistance, long-term sellers may look to make an appearance this week, potentially overthrowing the current 200-day SMA on the daily timeframe. The minutes from the FOMC December 10-11 meeting showed some policymakers raised concerns that low rates for a long time may exacerbate imbalances in the financial sector. This is the PMI’s lowest reading since June 2009, when it registered 46.3 percent, according to the Institute for Supply Management. Also of interest is January’s opening level, hovering above 1.12 at 1.1222.Ĭoncerning Friday’s data, the US December PMI registered 47.2 percent, a decrease of 0.9 percentage points from the November reading of 48.1 percent. In terms of support/resistance on this scale, Quasimodo resistance plotted at 1.1348 is in view, as is nearby support at 1.1072 (boasts an incredibly strong history since early August 2019) and another layer of support coming in at 1.0990.Ī closer reading of price action on the H4 timeframe has the candles between the 1.12/1.11 handles, with support hovering just north of 1.11 at 1.1110. We also remain compressing within a local (reasonably small) ascending channel configuration (1.0981/1.1199), formed inside a larger ascending channel formation taken from 1.0879/1.1179. Overall, according to the weekly timeframe, the primary downtrend has remained south since early 2018.Īfter challenging monthly highs at 1.1293 Wednesday, EUR/USD shifted lower and concluded the week revisiting the 200-day SMA (orange – 1.1141), positioned a few points north of the 50-day SMA (blue – 1.1088). A break higher, on the other hand, has the 2019 yearly opening level to target at 1.1445. Noticeable downside objectives fall in around the 2016 yearly opening level at 1.0873 and channel support, taken from the low 1.1109. ![]() Technical research has weekly movement testing channel resistance, extended from the high 1.1569. Europe’s shared currency finished the week a shade lower against the buck, erasing a portion of the prior week’s gains. ![]()
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