Watch for the minor AB=CD pattern to complete at 1.1000 today!!
After price rubbed shoulders with the 4hr swap level at 1.0854 yesterday, we can see that price eventually declined in value down to 1.0900, which did, after a deep fake lower mind you, act as support. For those who read our previous report (blog.icmarkets.com/wednesday-22nd-july-daily-technical-outlook-and-review/) on the Euro, you may recall that we took a long position from 1.0858 early on Tuesday just above the heavily confluent 4hr Harmonic AB=CD zone at 1.0847-1.0800, with the hope of price reaching the 1.1000 region – our take-profit area.
With the Euro now seen driving higher from 1.0900, we do believe price has formed a C-leg to a minor 4hr Harmonic AB=CD bearish pattern which completes nicely around the 1.272% Fibonacci extension, just above 1.1000. This – coupled with the fact that price is still trading from higher timeframe demand at the moment (Weekly demand1.0519-1.0798/Daily swap level 1.0820) could see the D-leg to this pattern form later on today, thus hitting out take-profit level at 1.0995.
Once, or indeed if price does connect with 1.1000 area, this could also make for a nice base to sell at, since it is not only a humongous round number that converges with a 4hr Harmonic AB=CD completion point (mentioned above), it also has the backing of a 4hr supply zone seen at 1.1034-1.1000 positioned within a daily supply area coming in at 1.1083-1.1006. Waiting for lower timeframe selling confirmation at this sell zone is advised here, however, since we must remember that by shorting here, we’re potentially going up against weekly buyers from demand at 1.0519-1.0798.
Levels to watch/live orders:
• Buys: 1.0858 [Live] (Stop loss: Breakeven).
• Sells: 1.1000 region Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
With the Euro now seen driving higher from 1.0900, we do believe price has formed a C-leg to a minor 4hr Harmonic AB=CD bearish pattern which completes nicely around the 1.272% Fibonacci extension, just above 1.1000. This – coupled with the fact that price is still trading from higher timeframe demand at the moment (Weekly demand1.0519-1.0798/Daily swap level 1.0820) could see the D-leg to this pattern form later on today, thus hitting out take-profit level at 1.0995.
Once, or indeed if price does connect with 1.1000 area, this could also make for a nice base to sell at, since it is not only a humongous round number that converges with a 4hr Harmonic AB=CD completion point (mentioned above), it also has the backing of a 4hr supply zone seen at 1.1034-1.1000 positioned within a daily supply area coming in at 1.1083-1.1006. Waiting for lower timeframe selling confirmation at this sell zone is advised here, however, since we must remember that by shorting here, we’re potentially going up against weekly buyers from demand at 1.0519-1.0798.
Levels to watch/live orders:
• Buys: 1.0858 [Live] (Stop loss: Breakeven).
• Sells: 1.1000 region Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
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