Forex Technical Outlook For EUR/USD (Daily)
H4 demand, now supply at 1.0903-1.0928 held at the open, but ended with price collapsing to lows of 1.0859 on the day.
Aside from price taking out the current H4 demand and potentially opening the way South for further selling down to a H4 Quasimodo support area at 1.0809-1.0826, daily action was also seen plugging into demand at 1.0809-1.0886.
Given this data, and possibility for more Southside action this week to support at 1.0796, below is a plan of attack, as follows:
To trade short, in-line with both the weekly and H4 expectations, price would need to retest the underside of the current demand as supply followed by a lower time frame sell signal. But, caution is advised here since the above daily demand could potentially halt selling before price reaches the H4 Quasimodo area, or the take-profits target.
In regards to buying the single currency, the only place that could yield a large enough bounce to the Northside would be the H4 Quasimodo support area, as is it lodged deep within the extremes of daily demand, but sits just above both weekly support, and the psych mark at 1.0800.
But, hang on, there is a possibility of a fakeout below the H4 area before buyers step in, so recommend waiting for the lower time frames to confirm buying strength exists before risking any capital here.
Marks to watch/live orders:
- Buys: 1.0809-1.0826 Tentative/confirmation required, Stop loss: dependent on where one confirms this area.
- Sells: 1.0903-1.0928 [\Tentative/confirmation required, Stop loss: dependent on where one confirms this area.
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a tech trader.