We’ve talked about EUR/USD under pressure from a technical perspective. Using OANDA’s in-house data, we can see that Long orders below 1.29 levels has decreased significantly. This decrease the resistance any downward momentum may face should price break below 1.29 level.Â Next level of significant support may come at 1.28 where we see a consolidation of Long orders around the region.
We have observed an accumulation of sell orders around the recent swing high around 1.625. Other than that, there seems to be no other major buy/sell orders that can act as good support/resistance. It is interesting to note no significant buy orders around 1.615, with the orders seemingly disappeared 1 day ago. Perhaps sentiment of GBP/USD has changed?
Large buy orders are waiting at around 1.035 region. Hence we could see a small bounce should price hit below 1.035. However, do not regard this bounce as a full bullish reversal as short orders can come in quickly to push prices lower. Case in point, look at EUR/USD which had large buy orders around 1.29 on September 29 – Price move to 1.29 and we did see a small bounce but selling quickly resumed.
The lack of sell orders around 0.825 is telling as it suggest that probability of Kiwi rallying up back to it’s previous swing high is more likely than downside risks, which could be nicely supported around 0.818.
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