Entering US hours on Tuesday, H4 supply at 1.1762-1.1732, as you can see, elbowed its way into the spotlight. The H4 candles turned south from the underside of this base and closed beneath the nearby 1.17 handle. Before sellers can stretch their legs here, though, July’s opening level at 1.1675 and August’s opening level at 1.1686 will need to be consumed. The next area of support seen beyond these monthly opening levels falls in at the 1.16 handle.
For those who read Tuesday’s report you may recall the team highlighting the current H4 supply zone as a potential sell – well done to any of our readers who managed to take advantage of this move. The reasons behind selecting this zone (aside from the H4 supply already being a proven area) came down to weekly movement displaying a resistance area at 1.1717-1.1862, along with a daily resistance level positioned at 1.1723. Further adding to this, H4 RSI divergence was clearly evident.
Areas of consideration:
Folks who missed the opportunity to sell from the aforementioned H4 supply zone yesterday may be offered a second chance to jump aboard this possible bearish train today. Knowing we’re coming from strong higher-timeframe resistances, a H4 close below July’s opening level mentioned above at 1.1675 is likely in store. This – coupled with a retest of 1.1675 as resistance in the shape of a full or near-full-bodied H4 bearish candle – would likely be sufficient enough to begin considering shorts, targeting the 1.16 handle, which also actually represents the top edge of a daily demand zone at 1.1530-1.1600 (the next downside target on the daily timeframe).
Today’s data points: US prelim GDP q/q.
For those who read Tuesday’s report you may recall the team highlighting the current H4 supply zone as a potential sell – well done to any of our readers who managed to take advantage of this move. The reasons behind selecting this zone (aside from the H4 supply already being a proven area) came down to weekly movement displaying a resistance area at 1.1717-1.1862, along with a daily resistance level positioned at 1.1723. Further adding to this, H4 RSI divergence was clearly evident.
Areas of consideration:
Folks who missed the opportunity to sell from the aforementioned H4 supply zone yesterday may be offered a second chance to jump aboard this possible bearish train today. Knowing we’re coming from strong higher-timeframe resistances, a H4 close below July’s opening level mentioned above at 1.1675 is likely in store. This – coupled with a retest of 1.1675 as resistance in the shape of a full or near-full-bodied H4 bearish candle – would likely be sufficient enough to begin considering shorts, targeting the 1.16 handle, which also actually represents the top edge of a daily demand zone at 1.1530-1.1600 (the next downside target on the daily timeframe).
Today’s data points: US prelim GDP q/q.
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