Basket Village USA
Weekly deadline:
Emphasis remains on Main support at $ 1.1473-1.1583, a long-term base sharing space with a 100% Fibonacci projection at $ 1.1613 and a 1.27% Fibonacci extension at $ 1.1550. Note that the value of 100% represents a harmonic bullish point AB = CD, bringing a 1.13% BC Fibonacci extension to the table at $ 1.1623.
The possibility of long-term selling stops being triggered south of late September lows of $ 1.1612 (2020) is also technically interesting on a weekly scale. Selling stops could help fuel higher interest from buyers from 1.1473 to 1.1583.
Trend studies show that with the breakout of the $ 1.1612 lows, the pair may be in the first phase of a downtrend change.
Daily schedule:
Improving risk sentiment weighed on the USD’s rise on Tuesday – the USD index ended the session significantly below the best levels around 94.06, pushing EUR / USD out of the blue as a result. session low at $ 1.1581.
The technical structure remains focused on Fibonacci support between $ 1.1420 and $ 1.1522 (stuck to the low of the main weekly support at 1.1473-1.1583) and Quasimodo support has turned to resistance at $ 1.1689.
From the Relative Strength Index (RSI), the value of the indicator has moved out of oversold territory during recent trading. The continued rise calls attention to the midline of 50.00. Therefore, it will be a level to keep an eye on the future.
Period H4:
As the H4 scale shows, the mix of resistance at $ 1.1622, a previous support from Quasimodo, and descending resistance, stretching from the low of $ 1.1794, drew the sell off on Tuesday, hitting a higher low of $ 1.1581 (ahead of Quasimodo’s support of $ 1.1563).
By maintaining the current lows and eliminating the aforementioned resistances, the resistance at $ 1.166 is visible, sharing the space with a 50.00% retracement at $ 1.1659 and a 100% Fibonacci projection at 1.1656. $.
With medium-term flows declining since June, sellers probably still have the edge in this market.
Period H1:
The majority of Tuesday’s action was centered around $ 1.16. US hours declined to session lows, with the unit subsequently recovering a position of $ 1.16 + in the recent move. The trendline resistance, drawn from the top of $ 1.1846, attracts attention as a possible bullish target, followed by the H4 resistance highlighted above at $ 1.1666.
Below $ 1.16, the H4 Quasimodo support at $ 1.1563 is a ground to concern.
Technical levels observed:
If the buyers defend $ 1.16 on the H1, this implies an advance towards the resistance of the H1 trendline, drawn from the high of $ 1.1846. Ultimately, a move above said trendline would likely push the currency pair towards H4 resistance at $ 1.1666, which is joined by Fibonacci studies on the H4 around $ 1.1656.
A share below $ 1.16, on the other hand, could lead to H4 Quasimodo support at $ 1.1563.
