Since the week’s open the shared currency has struggled to establish firm direction, consequently chalking up three consecutive daily indecision candles.
With respect to the higher timeframes, there’s been little change as far as structure is concerned. Weekly movement continues to meander between resistance priced in at 1.1465 (brings with it a nearby cloned resistance ), and demand coming in at 1.1119-1.1212. However, it is worth pointing out the current weekly candle boasts a somewhat prominent selling wick, possibly indicating a stance.
Closer attention to daily structure adds the possibility of an (red arrows) developing in the near future, terminating around the top edge of a demand drawn from 1.1171-1.1220 (glued to the top edge of the aforementioned weekly demand). If it follows the pair turns northbound prior to completing the , however, traders are urged to pencil in resistance at 1.1455 that merges closely with two Fibonacci resistances: a 61.8% and a 38.2% at 1.1469 and 1.1443, respectively.
In terms of where we stand on the H4 timeframe, November’s opening level at 1.1314 was tested as support in recent hours, though has failed to generate much follow-through movement. This shines the spotlight on 1.13 and a support (etched from the low 1.1215). As a reminder, 1.13 (green) remains an area of interest for possible longs in this market.
Areas of consideration:
1.13 is likely on the radar for many traders today for a bounce higher. Why only a bounce is largely due to the lack of higher-timeframe convergence.
Conservative traders out of 113 are likely to opt to wait for additional confirmation by way of a signal. That way, traders are able to observe buyer/seller intent and also have defined levels for entry and stop-loss orders. As for take-profit targets, ultimately, we would be looking for a bounce off 1.13 to at least reach the nearby H4 resistance (taken from the high 1.1621).
Today’s data points: US ADP Non-Farm Employment Change; US ISM Non-Manufacturing PMI; FOMC Member Bostic Speaks.