EUR/USD H1 forming bullish pennant against HTF supply...
EUR/USD:
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
The month of February witnessed EUR/USD revisit the upper limit of demand at 1.0488/1.0912 – a noteworthy area given the momentum derived from its base – and pencil in an appealing (bullish) hammer candlestick pattern.
Upside this month, currently trades +3.77%, manoeuvred the pair into demand-turned supply at 1.1857/1.1352 which intersects with long-term trendline resistance (1.6038).
The primary downtrend remains in motion and has remained lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
The 200-day SMA limited downside from 1.1159/1.1233 last week, eventually generating sizeable moves to the upside heading into the close. Follow-through buying materialised Monday, driving through supply at 1.1394/1.1342 (now potential demand) and shaking supply at 1.1540/1.1486. Trendline resistance is seen close by (1.1852), in the event we continue pushing north today.
What’s also notable from a technical perspective is the RSI indicator piercing overbought levels, and testing values not seen since March 2008.
H4 timeframe:
Supply at 1.1496/1.1471, which happens to converge with a 161.8% Fib ext. point at 1.1475, entered play on Monday, following a move through supply at 1.1399/1.1376. So far both levels are holding ground. Note that the current supply is glued to the underside of daily supply mentioned above at 1.1540/1.1486.
H1 timeframe:
Amidst a sharp slump in US Treasuries, scoring all-time lows, and the US dollar index, or DXY, breaching 95.00 to the downside, EUR/USD journeyed north Monday, adding more than 150 points, or 1.35%.
Technically, the H1 candles are seen compressing within what appears to be a bullish pennant pattern (1.1494/1.1365) atop the 1.14 handle. Should the euro breakout to the upside, a move, measured from 1.1287 to the top edge of the pennant’s formation (blue arrow) added to the breakout point, could be seen.
With reference to the RSI indicator, the value drifts a touch beneath its overbought perimeter.
Structures of Interest:
Monthly action likely has longer-term players anticipating a pullback after closing in on 1.1857/1.1352; some, however, will watch trendline resistance, sited higher up on the curve. Daily supply at 1.1540/1.1486, housed within the current monthly supply, is in motion, which itself supports H4 supply at 1.1496/1.1471.
Despite each of the above timeframes displaying supply zones, H1 price is chalking up a potential pennant pattern, which if it comes to pass, could signal a break of the current H4 and daily supplies and maybe even a test of monthly trendline resistance.
Traders interested in the H1 pennant likely wait for a H1 close north of 1.15 to form before committing.
Monthly timeframe:
(Technical change on this timeframe is often limited though serves as guidance to potential longer-term moves)
The month of February witnessed EUR/USD revisit the upper limit of demand at 1.0488/1.0912 – a noteworthy area given the momentum derived from its base – and pencil in an appealing (bullish) hammer candlestick pattern.
Upside this month, currently trades +3.77%, manoeuvred the pair into demand-turned supply at 1.1857/1.1352 which intersects with long-term trendline resistance (1.6038).
The primary downtrend remains in motion and has remained lower since 2008, exhibiting clear lower peaks and troughs.
Daily timeframe:
The 200-day SMA limited downside from 1.1159/1.1233 last week, eventually generating sizeable moves to the upside heading into the close. Follow-through buying materialised Monday, driving through supply at 1.1394/1.1342 (now potential demand) and shaking supply at 1.1540/1.1486. Trendline resistance is seen close by (1.1852), in the event we continue pushing north today.
What’s also notable from a technical perspective is the RSI indicator piercing overbought levels, and testing values not seen since March 2008.
H4 timeframe:
Supply at 1.1496/1.1471, which happens to converge with a 161.8% Fib ext. point at 1.1475, entered play on Monday, following a move through supply at 1.1399/1.1376. So far both levels are holding ground. Note that the current supply is glued to the underside of daily supply mentioned above at 1.1540/1.1486.
H1 timeframe:
Amidst a sharp slump in US Treasuries, scoring all-time lows, and the US dollar index, or DXY, breaching 95.00 to the downside, EUR/USD journeyed north Monday, adding more than 150 points, or 1.35%.
Technically, the H1 candles are seen compressing within what appears to be a bullish pennant pattern (1.1494/1.1365) atop the 1.14 handle. Should the euro breakout to the upside, a move, measured from 1.1287 to the top edge of the pennant’s formation (blue arrow) added to the breakout point, could be seen.
With reference to the RSI indicator, the value drifts a touch beneath its overbought perimeter.
Structures of Interest:
Monthly action likely has longer-term players anticipating a pullback after closing in on 1.1857/1.1352; some, however, will watch trendline resistance, sited higher up on the curve. Daily supply at 1.1540/1.1486, housed within the current monthly supply, is in motion, which itself supports H4 supply at 1.1496/1.1471.
Despite each of the above timeframes displaying supply zones, H1 price is chalking up a potential pennant pattern, which if it comes to pass, could signal a break of the current H4 and daily supplies and maybe even a test of monthly trendline resistance.
Traders interested in the H1 pennant likely wait for a H1 close north of 1.15 to form before committing.
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