Morning team,
As some of you who are following my Twitter might know, I've been in Adelaide for the weekend. It's Monday morning now and I'm writing this analysis at the airport waiting lounge while looking out at the scenic Adelaide Hills behind an iconic QANTAS jet. Pretty cool.
Going through my charts after the open and it's EUR/CAD that has caught my eye. Price had printed a higher time frame, horizontal support zone last and after closing close to it on Friday afternoon, gapped down through it on today's open.
Take a look at the zone I'm referring to on my EUR/CAD hourly chart below:
You can see that the drawn horizontal support zone coincides with the now filled weekly open gap. Any sort of confluence like this, usually will get my attention and this one is certainly no different.
With price retesting the zone to start the week, this time as resistance, we have confirmation that the zone is having attention paid to it and that it is in fact valid.
As always, we now zoom into an intrday chart and look for areas of short term support that will potentially be retested as resistance, for a possible entry. Here's my 15 minute chart below:
The intrday chart shows price retesting the higher time frame support zone as resistance at the first arrow and then the short term support candle that formed to give us a possible entry on a retest.
Let's see if we get any sort of momentum coming out of this zone.
Best of probabilities to you.
Dane.
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