Watching for the potential Harmonic bat pattern to complete.
Weekly gain/loss: - 95 pips
Weekly closing price: 1.2582
Despite the stronger-than-expected rebound seen from the weekly support area given at 1.2433-1.2569 three weeks ago, weekly sellers came into the fray last week and retested the top edge of this zone.
Technically speaking, the selloff was likely due to the daily resistance area coming in at 1.2831-1.2763. Should the bears continue to dominate from this zone, the next area on the hit list is the demand penciled in at 1.2303-1.2423 (positioned just below the aforementioned weekly support area).
Looking across to the H4 timeframe, nonetheless, we have a beautiful Harmonic bat pattern forming. Not only is the powerful XA retracement (88.6% Fib retracement at 1.2455) located just ahead of the mid-level support 1.2450, it is also positioned within the noted weekly support area and its converging weekly trendline support taken from the low 0.9633.
Suggestions: In the event that the Harmonic pattern completes, we will be interested buyers here. Additional confirmation, in our opinion, is not required since we can comfortably place stops beyond the X point (1.2413). Given the lack of economic data in the market, however, it is doubtful we’ll see this area come into view today. So, we’d advise setting an alert at this zone as this will be an area that’ll likely come into play later on in the week.
Data points to consider: No high-impacting events scheduled to be released today.
Weekly closing price: 1.2582
Despite the stronger-than-expected rebound seen from the weekly support area given at 1.2433-1.2569 three weeks ago, weekly sellers came into the fray last week and retested the top edge of this zone.
Technically speaking, the selloff was likely due to the daily resistance area coming in at 1.2831-1.2763. Should the bears continue to dominate from this zone, the next area on the hit list is the demand penciled in at 1.2303-1.2423 (positioned just below the aforementioned weekly support area).
Looking across to the H4 timeframe, nonetheless, we have a beautiful Harmonic bat pattern forming. Not only is the powerful XA retracement (88.6% Fib retracement at 1.2455) located just ahead of the mid-level support 1.2450, it is also positioned within the noted weekly support area and its converging weekly trendline support taken from the low 0.9633.
Suggestions: In the event that the Harmonic pattern completes, we will be interested buyers here. Additional confirmation, in our opinion, is not required since we can comfortably place stops beyond the X point (1.2413). Given the lack of economic data in the market, however, it is doubtful we’ll see this area come into view today. So, we’d advise setting an alert at this zone as this will be an area that’ll likely come into play later on in the week.
Data points to consider: No high-impacting events scheduled to be released today.
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