Technicals going into Chinese data (not yet released)
Despite printing a healthy recovery from the top edge of a daily demand base at 0.7807-0.7841 on Tuesday, the commodity currency came under renewed pressure during yesterday’s segment. The daily base, as you can see, remains in play but appears as though it’s on the verge of giving way, which may call for a downside move to daily support pegged at 0.7732.
H4 support at 0.7812 (seen positioned a few pips ahead of the 0.78 handle) is currently holding ground and could encourage further buying back up to retest the recently broken H4 mid-level base at 0.7850. However, with weekly price seen approaching the 2018 yearly opening level seen on the weekly timeframe at 0.7801, the round number 0.78 may be brought into play today.
Potential trading zones:
The current daily demand will, according to weekly structure, likely suffer a breach/fakeout. Breakout sellers will, therefore, likely want to tread carefully here!
Buying from the 0.78 region seems a reasonable location for a bounce, given the connection between this number and the weekly 2018 yearly opening level. In addition to this, stop-loss orders positioned below the current H4 support and the daily demand area will likely be filled should we see an approach to 0.78. These orders, when filled, become sell orders, and therefore provide liquidity for traders to buy from 0.78.
Data points to consider: RBA Gov. Lowe speaks at 9am GMT; US unemployment claims at 1.30pm GMT.
H4 support at 0.7812 (seen positioned a few pips ahead of the 0.78 handle) is currently holding ground and could encourage further buying back up to retest the recently broken H4 mid-level base at 0.7850. However, with weekly price seen approaching the 2018 yearly opening level seen on the weekly timeframe at 0.7801, the round number 0.78 may be brought into play today.
Potential trading zones:
The current daily demand will, according to weekly structure, likely suffer a breach/fakeout. Breakout sellers will, therefore, likely want to tread carefully here!
Buying from the 0.78 region seems a reasonable location for a bounce, given the connection between this number and the weekly 2018 yearly opening level. In addition to this, stop-loss orders positioned below the current H4 support and the daily demand area will likely be filled should we see an approach to 0.78. These orders, when filled, become sell orders, and therefore provide liquidity for traders to buy from 0.78.
Data points to consider: RBA Gov. Lowe speaks at 9am GMT; US unemployment claims at 1.30pm GMT.
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