ICM Technical Analysis : EUR/USD 6 March 2020

ICM Technical Analysis : EURUSD – 6 March 2020

Regaining the 1.12 handle in recent trade, H4 price, leaving January’s opening level at 1.1222 unopposed, is now seen retesting the latter as support. The buck, despite a fleeting recovery Wednesday, was heavily offered Thursday, weighed on the back of waning US Treasury yields challenging all-time lows. Beyond 1.1222, traders face potential resistance around 1.1284.

EUR/USD weekly price recently touched, and somewhat bettered, channel resistance, extended from the high 1.1569. Sustained upside from here could ultimately land the unit at the 2019 yearly opening level from 1.1445. Recent movement follows a stronger-than-expected rotation off channel support, taken from the low 1.1109, and continued upside north of the 2016 yearly opening level at 1.0873.

Daily flow remains capped by Quasimodo resistance at 1.1199, after having shown resilience off the 200-day SMA (orange – 1.1098) on Wednesday. Limited supply is evident to the left of price north of 1.1199 until crossing swords with Quasimodo resistance at 1.1349.

Areas of consideration:

The breach of 1.12 to the upside is likely viewed as a bullish indicator. With January’s opening level at 1.1222 sited as possible resistance, as well as daily Quasimodo resistance at 1.1199 also perhaps hindering upside and weekly sellers likely still in play off channel resistance, buyers north of 1.12 contend with rocky ground.

A more conservative route for buyers above 1.12 may be to wait for a decisive H4 close above January’s opening level. That way, upside may be clear to at least H4 resistance mentioned above at 1.1284.

In the event sellers strengthen their grip and close back beneath 1.12 on the H4, however, bearish scenarios back to 1.11 could be in the offing.

Disclaimer: The information contained in this material is intended for general advice only.