From the top this morning, we can see that the weekly bulls are currently making an appearance just ahead of a weekly support area drawn from 0.7438-0.7315. From a technical standpoint, our team sees very little stopping the commodity-linked currency from retesting the weekly resistance line at 0.7604. Lower down the curve on the daily chart, the major closed back within the daily ascending channel formation (0.7148/0.7366) yesterday, and considering that price is also bolstered by a daily support area registered at 0.7517-0.7451, further upside is likely on the cards this week.
Over on the H4 chart, however, buying right now is problematic. Despite the Aussie recently finding support at the 0.75 handle, there’s an overhead H4 resistance area penciled in at 0.7544-0.7521. With this being the case, our team will not become buyers in this market until the aforementioned H4 resistance area is engulfed and subsequently retested as demand. While we believe this a technically sound approach, in less than two hours Aussie CPI data will hit the wire, so remain vigilant as technicals may take a back seat at this time!
Our suggestions: Watch for price to close above and retest the H4 resistance area at 0.7544-0.7521 as demand. Following a successful retest, one could look to enter long with their stops placed below the traded area. To our way of seeing things, there’s only one target to be had on this trade: the H4 supply zone coming in at 0.7606-0.7589 which envelopes the weekly resistance level mentioned above at 0.7604.
Over on the H4 chart, however, buying right now is problematic. Despite the Aussie recently finding support at the 0.75 handle, there’s an overhead H4 resistance area penciled in at 0.7544-0.7521. With this being the case, our team will not become buyers in this market until the aforementioned H4 resistance area is engulfed and subsequently retested as demand. While we believe this a technically sound approach, in less than two hours Aussie CPI data will hit the wire, so remain vigilant as technicals may take a back seat at this time!
Our suggestions: Watch for price to close above and retest the H4 resistance area at 0.7544-0.7521 as demand. Following a successful retest, one could look to enter long with their stops placed below the traded area. To our way of seeing things, there’s only one target to be had on this trade: the H4 supply zone coming in at 0.7606-0.7589 which envelopes the weekly resistance level mentioned above at 0.7604.
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