I´m following up on the article posted 2 days ago.
You can look into, but to make things faster here´s a brief recap:
The combination of support with a positive divergence in orderflow, located at the bottom of the channels – It also important to take into account that the channel is still point downwards – I´m leaning towards more upside, although Bond auctions in Europe will probably set the tone of London session – Resistance is located at 1.3690-1.3710 1.3720-1.3730 and 1.3750-1.3760 – This is a very thin area, which suggests that upside momentum might be easier to achieve, in the event the move is supported by positive orderflow readings – I will post an update tomorrow.
The divergence did not played out, as I was originally posted. The Euro broke the first band of support 1.3590-1.3490. The positive divergence indicated some momentum, played briefly until the euro touched the 1.3570 mark. However, selling pressure made it descend to new swing lows around 1.3435, where another positive divergence (see chart) played out.
The Euro is currently at the time of writing (1:10PM, ET) 100 pips above from the lows of late last night. I will look at the 1.3560-1.3630 area as short term resistance and how orderflow behaves at those levels. Below, 1.3400 is a key area for now (next few hours).
In terms of longer term levels to watch
1.3580-1.3630 (first tranche). Above, it could run til 1.38200. The space above is very “thin”, and likely to be revisited at some point.
As noted in the chart below, we have strong areas of support, where severul upmoves started, back in April and June of this year.
1.3350 small support
1.3250-1.3350 important support