6 Apr 2015
EUR/USD: needs a close above 1.0994 to kick of new action – ADM
FXStreet (Barcelona) - Eddie Tofpik of ADMISI, notes that EUR/USD requires at least two closes above 1.0994 to start a new phase of price action.
Key Quotes
“So, from full bearish I move the bullet point above this month down a notch with a question mark purely because of the uptick in the Short MA. In Mar we punched down through the previous 1.1099 support and then taking out lows from Sep, Apr & Mar 2003 but at the Mar 2003 level and even the Apr 2003 level the market failed to have two consecutive closes below.”
“Since then we have retraced but I draw your attention to the resistance at 1.0994, so far we have NOT had two consecutive closes over this despite three separate tests, most recently this last Friday on NFP!”
“All this has created a possible Pipe Bottom on the Weekly Chart but it is likely weak so far as there is no reflection of a bullish pattern on the Monthly Chart! During Mar I posed myself the question ‘Is this a Halfway Hesitation?’ on the Daily Chart.”
“I added the second question last Friday of ‘Is this an Ascending Triangle?’. The jury is still out on the first and I am still watching the second as we seem to be hitting significant resistance between the key recent 50% Fib at 1.0994 and earlier highs in Mar around 1.1029 – 1.1051!”
“Added to that the next upside MA resistance (currently 1.1113) is rapidly descending and may act as well!”
“All-in-all, I don’t feel able yet to answer either of those questions but would keep a close eye on the possible patterns.”
“Currently support is at 1.0867, 1.0757 1.0712 & then 1.0556. Resistance is at 1.1121, 1.1191 – 1.1210 & then 1.1383.”
“The 1.0994 is a support/resistance number but I think it will best act on a closing basis. Two closes over & we may start a new phase in the action!”
Key Quotes
“So, from full bearish I move the bullet point above this month down a notch with a question mark purely because of the uptick in the Short MA. In Mar we punched down through the previous 1.1099 support and then taking out lows from Sep, Apr & Mar 2003 but at the Mar 2003 level and even the Apr 2003 level the market failed to have two consecutive closes below.”
“Since then we have retraced but I draw your attention to the resistance at 1.0994, so far we have NOT had two consecutive closes over this despite three separate tests, most recently this last Friday on NFP!”
“All this has created a possible Pipe Bottom on the Weekly Chart but it is likely weak so far as there is no reflection of a bullish pattern on the Monthly Chart! During Mar I posed myself the question ‘Is this a Halfway Hesitation?’ on the Daily Chart.”
“I added the second question last Friday of ‘Is this an Ascending Triangle?’. The jury is still out on the first and I am still watching the second as we seem to be hitting significant resistance between the key recent 50% Fib at 1.0994 and earlier highs in Mar around 1.1029 – 1.1051!”
“Added to that the next upside MA resistance (currently 1.1113) is rapidly descending and may act as well!”
“All-in-all, I don’t feel able yet to answer either of those questions but would keep a close eye on the possible patterns.”
“Currently support is at 1.0867, 1.0757 1.0712 & then 1.0556. Resistance is at 1.1121, 1.1191 – 1.1210 & then 1.1383.”
“The 1.0994 is a support/resistance number but I think it will best act on a closing basis. Two closes over & we may start a new phase in the action!”