The shared currency decorated the H4 timeframe with a series of bullish candles on Monday, following a near-touch of support at 1.1627. Price action climbed back above the 1.17 handle – the first time since the ECB’s policy meeting in mid-June – largely as a result of a descending USD.
A bare economic calendar forced the spotlight on Trump’s trade policies yesterday, weighing on the dollar and bringing about a hefty decline in both European and US stock markets.
Shifting over to the technicals, 1.17 (as highlighted in Monday’s report) remains a level of interest, due to the number’s close association with nearby structure:
- June’s opening level at 1.1705.
- 61.8% H4 Fib resistance value at 1.1721.
- H4 resistance area at 1.1710-1.1734 which houses the lower edge of the weekly resistance area within at 1.1717-1.1862.
Areas of consideration:
Given noted factors, the sell zone between 1.1734/1.17 (green zone on the H4 timeframe) is strong enough for a market sell (without the need for additional candle confirmation) today, with stops plotted above 1.1734 and the initial take-profit area sited around the 1.1627 H4 support level mentioned above.
We are aware that the daily scale shows room to punch as high as daily resistance at 1.1824, but considering there’s a weekly area involved within the H4 sell zone, shorts remain high probability, in our view.
Today’s data points: US CB consumer confidence; FOMC member Bostic speaks.
A bare economic calendar forced the spotlight on Trump’s trade policies yesterday, weighing on the dollar and bringing about a hefty decline in both European and US stock markets.
Shifting over to the technicals, 1.17 (as highlighted in Monday’s report) remains a level of interest, due to the number’s close association with nearby structure:
- June’s opening level at 1.1705.
- 61.8% H4 Fib resistance value at 1.1721.
- H4 resistance area at 1.1710-1.1734 which houses the lower edge of the weekly resistance area within at 1.1717-1.1862.
Areas of consideration:
Given noted factors, the sell zone between 1.1734/1.17 (green zone on the H4 timeframe) is strong enough for a market sell (without the need for additional candle confirmation) today, with stops plotted above 1.1734 and the initial take-profit area sited around the 1.1627 H4 support level mentioned above.
We are aware that the daily scale shows room to punch as high as daily resistance at 1.1824, but considering there’s a weekly area involved within the H4 sell zone, shorts remain high probability, in our view.
Today’s data points: US CB consumer confidence; FOMC member Bostic speaks.
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