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 at 1.1710-1.1734 which houses the lower edge of the weekly 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 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.