End of the Day: Thursday, April 11, 2024

trades of the day 11/04/2024 quantum strikes
trades of the day 11/04/2024 quantum strikes

As the trading day wraps up, the EUR/USD currency pair has offered traders and analysts alike much to ponder, with price action that both intrigued and challenged market participants. The day concluded with a 57 pips Average True Range (ATR), indicating a relatively moderate level of volatility by recent standards, yet the distribution and timing of this movement provided key insights into the pair’s current dynamics.

Morning Session: A Quiet Start

The day began on a quieter note, with price action remaining subdued up until the major news releases. The Asian trading session saw the EUR/USD pair testing the 1.0750 level twice, each time facing rejection and failing to breach this significant resistance point. This level of activity set the stage for what was to unfold later in the day, keeping traders on alert for any potential shifts in market sentiment.

The Pivot and the Rejection

A critical point of interest for many was the day’s Pivot Point, situated at 1.0780, a marker that remained notably unchallenged throughout the trading session. The distance from this pivot underscored the lack of bullish momentum for the Euro against the US Dollar, highlighting the pair’s struggle to find upward traction.

The Afternoon Drop

The defining moment of the day’s price action occurred post-16:30, following a significant rejection at the 1.0750 mark. This rejection marked a pivotal turn in the day’s narrative, as the Euro began its descent towards the first Support level (S1) of the day, located at 1.06920. The downward movement was not only swift but also decisive, culminating in the establishment of this week and month’s low at 1.06992.

Analysis and Reflections

Today’s price action on the EUR/USD pair paints a picture of a market grappling with its direction, influenced heavily by the day’s economic releases and the broader market sentiment. The early rejections at the Asian session high and the inability to approach the daily Pivot Point underscore a prevailing bearish sentiment, which was further confirmed by the afternoon’s drop.

The movement towards and slightly beyond the day’s Support 1 level indicates a search for new support levels, as traders and algorithms alike responded to the culmination of the day’s news, particularly the ECB’s announcements. The breach of this support, albeit minimal, could signal a reassessment of the Euro’s strength against the Dollar, setting a cautious tone for the currency pair moving forward.

Looking Ahead

As we close the day, the key takeaway for traders is the importance of staying attuned to both technical markers and fundamental news releases. Today’s market movement reinforces the value of understanding the interplay between macroeconomic events and technical analysis. Looking ahead, market participants will undoubtedly keep a close eye on further economic indicators and geopolitical developments that could influence the direction of the EUR/USD pair.

In summary, today’s trading session offered a clear reminder of the dynamics that drive the forex market, with the EUR/USD pair demonstrating both the challenges and opportunities inherent in currency trading.

Trading our dreams into reality,
Mihai Paul Olteanu