For those who read previous reports, the spotlight was drawn towards 0.7304/0.7282 as a possible sell zone: an area shaded green on the H4 timeframe. Besides the H4 structure (the round number 0.73 and Quasimodo resistance at 0.7283), having the 2016 yearly opening level at 0.7282 positioned nearby ( ), and a daily Quasimodo resistance sited directly above 0.73 at 0.7304, added considerable weight, according to our technical reading.
Well done to any of our readers who remain short this market. In terms of take-profit targets, the first objective was recently met at 0.7258 (last Friday’s high), with eyes on October’s opening level at 0.7229 as the next port of call. Of course, price action could eventually push for a test of 0.72, as it merges with the next downside target on the weekly scale: the 2017 yearly opening level at 0.7199.
Areas of consideration:
Traders are urged to consider reducing risk to breakeven from 0.7304/0.7282, owing to the RBA making an appearance in early Asia this morning. Although no change is expected, which has been the case for more than 2 years, an AUD/USD response is likely.
Today’s data points: RBA statement; US PPI m/m; FOMC member Quarles speaks, US prelim UoM consumer sentiment.