So, with the technical picture in mind and an upcoming policy decision from the RBA just around the corner, what’s likely in store for this market today? Quite simply, one could, if patient enough to wait for the lower timeframe confirmation, look to short from the H4 Bat sell zone we discussed above. Irrespective if one waits for confirmation here or not, we would advise placing your stops above the current H4 supply at 0.7770. The reason we require confirmation here, however, should be clear. By selling from this region, one is effectively going against weekly flow (see above). In regards to confirmation, this could be in the form of an engulf of demand and subsequent retest as supply, a break/retest of a or simply a collection of selling wicks around a lower-timeframe resistance.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 0.7740 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area).