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 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 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 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 coming in at 0.7606-0.7589 which the weekly mentioned above at 0.7604.