Weekly gain/loss: + 88 pips
Weekly closing price: 0.7616
Over the last week we saw the bulls continue to lift price higher, marginally closing above weekly supply at 0.7610-0.7543. However, it may be worth waiting for this week’s candle to close before presuming that the said weekly supply is consumed, since it could just as well be a fakeout.
Zooming in and looking at the daily timeframe, we can see that the unit ended the week closing just ahead of a supply zone pegged at 0.7679-0.7640. This further confirms the need to wait for the this week’s candle to close, as the current daily supply may hold and bring the commodity currency back down to the support area penciled in at 0.7556-0.7523.
H4 action, as you can see, remains consolidating between April’s opening level at 0.7632 and the support area coming in at 0.7571-0.7557. Of particular interest here is April’s opening level is sited just 8 pips below the lower edge of the daily supply mentioned above at 0.7679-0.7640.
Our suggestions: Although weekly price printed a minor close above supply, both the H4 and daily charts indicate that the bears have a fighting chance here! To our way of seeing things, an ideal scenario would be for H4 price to chalk up a bearish selling wick that whipsaws through 0.7632, connects with the daily supply and then closes back below 0.7632. This would, in our humble opinion, be enough evidence to validate a sell, with an initial target objective set at the said H4 support area.
Data points to consider: RBA Gov. Lowe speaks at 12.30am. FOMC Member Dudley speaks at 1pm GMT+1.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Look for H4 price to chalk up a bearish selling wick that whipsaws through 0.7632 and connects with the daily supply (stop loss: ideally beyond the candle’s wick).
Weekly closing price: 0.7616
Over the last week we saw the bulls continue to lift price higher, marginally closing above weekly supply at 0.7610-0.7543. However, it may be worth waiting for this week’s candle to close before presuming that the said weekly supply is consumed, since it could just as well be a fakeout.
Zooming in and looking at the daily timeframe, we can see that the unit ended the week closing just ahead of a supply zone pegged at 0.7679-0.7640. This further confirms the need to wait for the this week’s candle to close, as the current daily supply may hold and bring the commodity currency back down to the support area penciled in at 0.7556-0.7523.
H4 action, as you can see, remains consolidating between April’s opening level at 0.7632 and the support area coming in at 0.7571-0.7557. Of particular interest here is April’s opening level is sited just 8 pips below the lower edge of the daily supply mentioned above at 0.7679-0.7640.
Our suggestions: Although weekly price printed a minor close above supply, both the H4 and daily charts indicate that the bears have a fighting chance here! To our way of seeing things, an ideal scenario would be for H4 price to chalk up a bearish selling wick that whipsaws through 0.7632, connects with the daily supply and then closes back below 0.7632. This would, in our humble opinion, be enough evidence to validate a sell, with an initial target objective set at the said H4 support area.
Data points to consider: RBA Gov. Lowe speaks at 12.30am. FOMC Member Dudley speaks at 1pm GMT+1.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: Look for H4 price to chalk up a bearish selling wick that whipsaws through 0.7632 and connects with the daily supply (stop loss: ideally beyond the candle’s wick).
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