Interesting price action on the Aussie this morning...
H4 bulls, as you can see, struggled to maintain a bullish presence above the 0.76 handle during the early hours of Wednesday’s trade. This was, technically speaking, largely thanks to April’s opening level at 0.7632, which sent the commodity currency aggressively lower going into the London segment, eventually taking out 0.76 and clocking a low of 0.7571.
Looking over to the bigger picture, however, it’s clear to see that weekly price is currently interacting with a support area at 0.7610-0.7543. Daily action on the other hand shows space for price to continue pushing lower until we reach the support area formed at 0.7556-0.7523, which happens to be glued around the lower edge of the current weekly support area.
Our suggestions: In essence, we have the following picture:
• H4 price now lurking back above 0.76. Can the bulls survive here?
• Weekly flow shaking hands with a support area.
• Daily movement showing room to push lower before support structure is in view.
Personally speaking, we’ll hold fire for the time being and see if H4 price can touch gloves with the mid-level support at 0.7550, which converges nicely with a trendline support etched from the low 0.7519 (green area), before considering longs. This way, both the weekly and daily support areas will be in play!
Data points to consider: Australian Trade balance at 2.30am. US ADP non-farm employment change at 1.15pm, US Weekly unemployment claims and US trade balance figures at 1.30pm, US ISM non-manufacturing PMI and FOMC member Powell speaks at 3pm GMT+1.
Levels to watch/live orders:
• Buys: 0.7550 region (waiting for a H4 bull candle – preferably a full, or near full-bodied candle –to form is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
Looking over to the bigger picture, however, it’s clear to see that weekly price is currently interacting with a support area at 0.7610-0.7543. Daily action on the other hand shows space for price to continue pushing lower until we reach the support area formed at 0.7556-0.7523, which happens to be glued around the lower edge of the current weekly support area.
Our suggestions: In essence, we have the following picture:
• H4 price now lurking back above 0.76. Can the bulls survive here?
• Weekly flow shaking hands with a support area.
• Daily movement showing room to push lower before support structure is in view.
Personally speaking, we’ll hold fire for the time being and see if H4 price can touch gloves with the mid-level support at 0.7550, which converges nicely with a trendline support etched from the low 0.7519 (green area), before considering longs. This way, both the weekly and daily support areas will be in play!
Data points to consider: Australian Trade balance at 2.30am. US ADP non-farm employment change at 1.15pm, US Weekly unemployment claims and US trade balance figures at 1.30pm, US ISM non-manufacturing PMI and FOMC member Powell speaks at 3pm GMT+1.
Levels to watch/live orders:
• Buys: 0.7550 region (waiting for a H4 bull candle – preferably a full, or near full-bodied candle –to form is advised, stop loss: ideally beyond the candle’s tail).
• Sells: Flat (stop loss: N/A).
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