Well done to anyone who entered long at the AB=CD support!

22 ก.ค. 2015

Going into yesterday’s London session the EUR currency rallied from the heavily confluent 4hr Harmonic AB=CD potential reversal zone (PRZ) at 1.0847-1.0800, which took prices back up to the 4hr swap level at 1.0854. Once the U.S traders begun placing orders, however, this level was broken, and price exploded north, taking out 1.0900 and connecting up with a 4hr swap level coming in at 1.0964, which, as you can see, is currently holding firm for the time being. This recent rally north should not really come as much of a surprise since the 4hr Harmonic AB=CD support boasted heavy confluence from the following structures:

• 4hr trendline taken from the low 1.0461.
• Fibonacci extension 1.272%.
• The daily swap level 1.0820.
• Weekly demand seen at 1.0519-1.0798.
• Round-number support seen a little lower at 1.0800.

For those who read our previous analysis on this pair, you may recall that we planned to enter long at the above said 4hr AB=CD support should lower timeframe confirmation be seen. Fortunately, we managed to spot an entry to get in long at 1.0858 on the 15 minute timeframe just before the U.S open. Our stop is now at breakeven.

Our ultimate target for this trade is the large round number 1.1000, which if you look across to the daily chart, you’ll see it lines up beautifully with a daily supply area at 1.1083-1.1006. However, before price reaches 1.1000, we’re expecting the market to trickle south today from 1.0964 and retest 1.0900 as support (as per the black arrows). This could, if lower timeframe buying confirmation is seen, make for a nice a level to add to our current position.

Levels to watch/live orders:

• Buys: 1.0858 [Live] (Stop loss: Breakeven) 1.0900 [Tentative – confirmation required] (Stop loss: dependent on where one confirms this level).
• Sells: Flat (Stop loss: N/A).