Quick update on the EUR pair...

In our previous report (blog.icmarkets.com/wednesday-11th-november-daily-technical-outlook-and-review-u-s-canadian-bank-holidays-today/) we mentioned that we’d taken a long on the EUR pair at 1.06852, and was targeting Monday highs (pink circle) at 1.0788, followed by psychological resistance 1.0800 to take further profits (50% already closed). As shown on the chart, price did indeed continue to rally north coming so very close to hitting Monday’s highs. Our team, however, closed a further 25% of the position at the close of the H4 rejection wick seen at 1.0773.

We’re now going to let the rest of the remaining position run free, as we currently see a potential D-leg of a small Harmonic AB=CD pattern in the process of forming, completing nicely at the 1.0800 figure (see black arrows). In regards to shorting this AB=CD formation, we would advise caution and only trade here with lower timeframe confirming price action. Reason being is there will likely be a fakeout seen up to the broken Quasimodo line at 1.0819, before any sell-off takes place.

Concerning the current situation though, there’s agreement for higher prices being seen across the board regarding higher timeframe structures. Not only is price trading within a weekly range demand at 1.0519-1.0798, but it is also responding nicely to daily demand at coming in at 1.0658-1.0722 (sits within the above said weekly range demand and also coincides nicely with a bullish alternate AB=CD pattern at 1.0697).

Levels to watch/live orders:

• Buys: 1.06852 LIVE (Stop loss: breakeven).
• Sells: Possible sell trade around the 1.0800 region (confirmation required) (Stop loss: dependent on where one confirms this level).