, as you can see, failed to sustain gains beyond the key figure 1.10 yesterday, ending with price clocking a low of 1.0970 by the day’s end. As a result of this, the H4 support level
at 1.0948 is, once again, now likely the next barrier on the hit list. With this number having been a considerable support/resistance
level in the past, and also seen fusing nicely with a H4 mid-way support 1.0950, a H4 trendline
support extended from the high 1.1186, a H4 AB=CD bull
completion point at 1.0935 and a H4 supply zone
seen over on the US dollar index
around the 98.58-98.35ish region, this support level
is, in our book, worthy of center stage attention today. In addition to this, agreement is being seen across the board on the higher timeframes. Both weekly and daily action shows price connecting with supportive structures (1.0970/1.0909-1.0982).
Our suggestions: Between 1.0935 and 1.0950 is somewhere we expect the shared currency to bounce from. There is, however, still the possibility of a fakeout through this zone, as price may want to test the extremes of the current daily support area
before rotating to the upside. Therefore, we would require at least a H4 bullish
close from the H4 1.0935/1.0950 zone before a trade can be executed.
Data points to consider today are as follows: US housing data at 12.30pm, followed by FOMC member Dudley taking the stage at 11.45pm GMT
Levels to watch/live orders:
• Buys: 1.0935/1.0950 region (H4 bullish
candle close required prior to pulling the trigger Stop loss: ideally beyond the trigger candle).
• Sells: Flat (Stop loss: N/A).