{"id":13994,"date":"2015-07-07T05:47:37","date_gmt":"2015-07-07T05:47:37","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?p=13994"},"modified":"2025-11-13T22:26:59","modified_gmt":"2025-11-13T11:26:59","slug":"tuesday-7th-july-euro-summit-today-remain-vigilant","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/tuesday-7th-july-euro-summit-today-remain-vigilant\/","title":{"rendered":"Tuesday 7th July: Euro Summit today \u2013 remain vigilant."},"content":{"rendered":"

Lower timeframe confirmation<\/strong>: simply means waiting for price action on the lower timeframes to confirm direction within a higher timeframe area. For example, some traders will not enter a trade until an opposing supply or demand area has been consumed, while on the other hand, another group of traders may only need a trendline break to confirm direction. As you can probably imagine, the list is endless. We, however, personally prefer to use the two methods of confirmation mentioned above in our trading.<\/p>\n

\n\tEUR\/USD:<\/strong><\/h4>\n

Despite the fact that Greek voters rejected austerity this weekend, the EUR\/USD pair recovered well during yesterday\u2019s trade, resulting in price filling the 120-pip weekend gap, which, as you can see, just missed connecting with the 1.1100 handle. This rebound may reflect hope that the Greek government can finally reach a deal with its creditors.<\/p>\n

Technically, we can see that price remains mid-range on the weekly timeframe between 1.1532-1.1278 \u2013 a weekly supply area, and 1.0519-1.0798 \u2013 a weekly demand zone. Meanwhile on the daily scale, price is seen holding nicely above daily demand at 1.0886-1.0978 with room seen above for further buying. Personally, we\u2019re not convinced by yesterday\u2019s surge north, and even though this pair currently boasts demand from the daily chart, we do not see the EUR getting above 1.1100\/1.1111, based on the fear plaguing this market that the \u2018no\u2019 vote could backfire on the Greeks. If price does manage to trade higher, however, we see price only reaching as far as the 4hr supply at 1.1171-1.1147 for the following reasons:<\/p>\n

    \n
  1. \n\t\tTake a look across to the daily chart; you may be able to see that this 4hr area of supply lines up nicely with a daily swap level 1.1148.<\/li>\n
  2. \n\t\tThe 4hr supply area contains the magic Fibonacci retracement number 0.618.<\/li>\n
  3. \n\t\tThe 4hr supply zone is also supported by the mid-level number 1.1150, which as most already know are often reactive points in this market.<\/li>\n<\/ol>\n

    With all of the above taken into consideration, we\u2019re going to keep an eye on the 1.1100\/1.1111 region and the aforementioned 4hr supply zone seen above it for potential (confirmed) shorting opportunities today. Targets will of course depend on the approach to each zone.<\/p>\n

    \"EURO\"<\/a><\/p>\n

    Levels to watch\/live orders:<\/u><\/p>\n