1.0850 appears fragile on the H1 timeframe
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 demand-turned supply at 1.1857/1.1352 (intersects with a long-term trendline resistance [0.6038]) 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, on the other hand, is tunnelling back into the said demand, so far disregarding April’s candlestick pattern.
With reference to the primary trend, price has exhibited clear lower peaks and troughs since 2008.
Daily timeframe:
Partially altered from previous analysis -
Since the later stages of last week, daily movement has been consolidating ahead of the 78.6% Fib level at 1.0745.
Another constructive development is the formation of a bearish pennant pattern between 1.1147/1.0635. It is also worth pointing out the 200-day simple moving average (SMA) circles the upper portion of our pennant configuration around 1.1024.
A convincing daily close under the current pattern structure might give rise to a fresh wave of selling. Breaking lower entails tipping 1.0745 and ultimately competing with demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
EUR/USD bulls went on the offensive Tuesday after bottoming a touch off trendline support (1.0637). The advance saw supply at 1.0906/1.0878 elbow its way into focus, prompting price action to respond in the form of a Japanese shooting star candlestick pattern, considered a bearish signal at peaks. This is likely enough technical evidence to interest sellers to attempt an approach to the said trendline support.
H1 timeframe:
As the US dollar index revisited levels beneath 100.00 Tuesday, intraday action gathered steam off 1.08 on EUR/USD, making short work of 1.0850. Shortly after, nonetheless, price stalled just ahead of channel resistance (1.0875) and pulled back to the 1.0850 neighbourhood by the closing stages of the day.
Structures of Interest:
1.0850 appears fragile on the H1 timeframe, pressured by H4 flow off supply from 1.0906/1.0878. In fact, a H1 close beneath 1.0850 may be a sign H4 sellers are willing to take things lower.
Intraday take-profit targets south of 1.0850 rest nearby at the 100-period simple moving average from 1.0824, with a break throwing light back on 1.08 and channel support (1.0766), and maybe even H1 demand placed at 1.0760-1.0775.
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 demand-turned supply at 1.1857/1.1352 (intersects with a long-term trendline resistance [0.6038]) 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, on the other hand, is tunnelling back into the said demand, so far disregarding April’s candlestick pattern.
With reference to the primary trend, price has exhibited clear lower peaks and troughs since 2008.
Daily timeframe:
Partially altered from previous analysis -
Since the later stages of last week, daily movement has been consolidating ahead of the 78.6% Fib level at 1.0745.
Another constructive development is the formation of a bearish pennant pattern between 1.1147/1.0635. It is also worth pointing out the 200-day simple moving average (SMA) circles the upper portion of our pennant configuration around 1.1024.
A convincing daily close under the current pattern structure might give rise to a fresh wave of selling. Breaking lower entails tipping 1.0745 and ultimately competing with demand at 1.0526/1.0638, an area extended from March 2017.
H4 timeframe:
EUR/USD bulls went on the offensive Tuesday after bottoming a touch off trendline support (1.0637). The advance saw supply at 1.0906/1.0878 elbow its way into focus, prompting price action to respond in the form of a Japanese shooting star candlestick pattern, considered a bearish signal at peaks. This is likely enough technical evidence to interest sellers to attempt an approach to the said trendline support.
H1 timeframe:
As the US dollar index revisited levels beneath 100.00 Tuesday, intraday action gathered steam off 1.08 on EUR/USD, making short work of 1.0850. Shortly after, nonetheless, price stalled just ahead of channel resistance (1.0875) and pulled back to the 1.0850 neighbourhood by the closing stages of the day.
Structures of Interest:
1.0850 appears fragile on the H1 timeframe, pressured by H4 flow off supply from 1.0906/1.0878. In fact, a H1 close beneath 1.0850 may be a sign H4 sellers are willing to take things lower.
Intraday take-profit targets south of 1.0850 rest nearby at the 100-period simple moving average from 1.0824, with a break throwing light back on 1.08 and channel support (1.0766), and maybe even H1 demand placed at 1.0760-1.0775.
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