We're thinking about shorts from 0.7732...
The commodity currency gravitated north against its US counterpart yesterday after the FOMC decided to raise interest rates by 25bps. From the weekly scale we can see that price is currently back shaking hands with the weekly trendline resistance stretched from the high 0.8163. In the event that the bulls continue to press forward here, the next upside objective can be seen at 0.7849-0.7752: a weekly supply that merges nicely with another weekly trendline resistance taken from the high 0.7835. Down on the daily chart, yesterday’s candle smashed its way through the daily supply at 0.7699-0.7656, and is now seen retesting the top edge of this area as support. Assuming that the bulls remain in the driving seat here, our expectation is for price to connect with the nearby daily Quasimodo resistance at 0.7734.
Jumping across to the H4 candles, the pair is seen trading within the walls of a H4 supply at 0.7720-0.7706. Although the bears have made an attempt to push things lower from here, we feel this base is on the verge of giving way which could see the candles approach the H4 Quasimodo resistance at 0.7732.
Our suggestions: Quite simply, we are looking to short from the current H4 Quasimodo resistance level today. Not only does this base converge closely with the daily Quasimodo resistance line at 0.7734, it’s also positioned around the weekly structures mentioned above. We would, dependent on the time of day, likely look to go in aggressive at 0.7732 and place stops above the apex high at 0.7740. However, do be aware that we have Australian employment figures due soon!
Data points to consider: Aussie employment figures at 12.30am. US housing data, Philly Fed manufacturing index report as well as the US jobless claims figure are all scheduled for release at 12.30pm GMT.
Jumping across to the H4 candles, the pair is seen trading within the walls of a H4 supply at 0.7720-0.7706. Although the bears have made an attempt to push things lower from here, we feel this base is on the verge of giving way which could see the candles approach the H4 Quasimodo resistance at 0.7732.
Our suggestions: Quite simply, we are looking to short from the current H4 Quasimodo resistance level today. Not only does this base converge closely with the daily Quasimodo resistance line at 0.7734, it’s also positioned around the weekly structures mentioned above. We would, dependent on the time of day, likely look to go in aggressive at 0.7732 and place stops above the apex high at 0.7740. However, do be aware that we have Australian employment figures due soon!
Data points to consider: Aussie employment figures at 12.30am. US housing data, Philly Fed manufacturing index report as well as the US jobless claims figure are all scheduled for release at 12.30pm GMT.
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