Europe Open: Asian session pushed currencies lower, but Europe bulls fighting back.

EUR/USD H1

EUR/USD managed to stay above 1.2900, with Yesterday’s low of 1.288 acting as a strong support level. From here on, bulls will want EUR/USD to hit above 1.30. If price fails to even test Yesterday’s high, we could see a head and shoulders pattern forming with Yesterday’s low acting as neckline.

GBP/USD H1

Heavily bearish as price as break below Yesterday’s low and Sep 30’s low. Failure to break and sustain above Yesterday’s low will put bears firmly in the driving seat.

DAX Futures H1

DAX managed to push above last week’s consolidation range between 7,265 and 7,340, which are incidentally around Yesterday’s low and today’s H3. Currently price has bounced off L3 of 7,282 and looks to test the top of consolidation range once again. Unfortunately yesterday’s price action does not necessary invalidate the consolidation range, just as how the sell off back on 28th Sep failed to entice bears to bring prices lower.

FTSE100 Futures H1

Slowly but surely trading higher? One could arguably draw a trendline from 26th Sep low connecting Today’s low, but that could be seeing patterns where they don’t exist. Perhaps we are simply stuck in a consolidation zone without any obvious patterns to be had. Nonetheless, something to encourage the bulls would be the fact that prices bounced off Today’s L3, seeking H3 as a potential target.

Brent Crude Oil H1

Price was trading mostly between 50.0% and 38.2% Fib retracement late last week and early this week. We’ve just broken below the 38.2% Fib and now Brent looks to trade lower with an upward trendline providing potential support (drawn from 20th Sep low which is also the Fib low used).

Bottomline:

Change of fortunes today? Seems that there could be potential strong resistance for any risk related rally during Europe Session, unlike past 2 days which saw Europe session pushing prices higher.

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