Higher-timeframe technicals show weekly price is trading from a major at 1.1533-1.1278. Should the bears remain dominant from here, the next downside targets to have an eye on falls in around the 1.0970 region, followed closely by a major support seen at 1.0819. On the other side of the field, however, daily action currently occupies a at 1.1224-1.1072.
Our suggestions: On the whole, we’re finding this pair rather restricted. Firstly, there’s very little room for the H4 candles to stretch their legs within its current range, and also beyond its barriers. Secondly, a long trade in this market would place one against potential weekly sellers, but in-line with daily structure, and vice versa for a short. With that in mind, we have come to the conclusion that it may be better to lay low until we see clearer direction form in this market.
On the data front, traders are now looking towards the US unemployment claims and manufacturing data, as well as Friday’s hard-hitting US NFP report.