EUR/USD Range Has Formed Two POC Zones

Nenad Kerkez

After a steady uptrend on EUR/USD, we see that important trend line has been broken and the pair has been dropping consistently for 2 days. One of the reasons why EUR/USD is dropping is possibly profit taking which was enacted by hedge funds as French elections grow closer. Today POC zone for selling is 1.0775-90 (D H3, ATR Pivot, inner trend line, EMA89) while we might expect buyers within 1.0665-85 zone (Order block, D L5, W L5, 78.6). Any break of Upper POC range (1.0790) and Lower POC range (1.0665) should establish new intraweek trend. At this point we need to treat this as range play with 2 zones where EUR/USD might react.

Quick Summary:

  • D H3 – Daily Camarilla Pivot (Daily Resistance)
  • POC – Point Of Confluence (The zone where we expect price to react – aka entry zone)
  • D L5 – Daily L5 Camarilla (Strongest Daily Support)
  • W L5- Weekly L5 Camarilla (Strongest Weekly Support)
  • Bullish Order Block – The height of bearish candle prior to move up

EURUSD Hourly Chart

EURUSD Hourly Chart

Source: admiralmarkets.com

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