EUR/USD Two POC Zones Waiting For Possible Sellers

January 05, 2017 10:27

The EUR/USD spiked above 1.0500 reaching 1.0575. The move was sparked by stop grabbers above 1.0520 and yuan depo rates flying to 96.6%. Yen demand was huge, sending the dollar down across the board. At this point the USD is recovering while EUR/USD might get rejected from POC1 and 2.

Technically we see 2 POC zones. POC 1.0520-35 (61.8, trend line, ATR pivot) could reject the price towards 1.0460. If the EUR/USD spikes above POC, we should watch for possible rejection off POC2 1.0570-85 (ATR top, trend line, 78.6) towards 1.0520 and 1.0460. 1.0460 is a support now and only a momentum break on 1h or 4h close below 1.0460 should target 1.0420 again.

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