Over on the weekly chart, price recently connected with a major area of weekly resistance coming in at 1.1533-1.1278. This zone has managed to cap upside in this market since May 2015, so the sellers could make an appearance here! Looking down to the , nevertheless, there appears to be room for the pair to extend higher towards daily supply drawn from 1.1446-1.1369, which merges with a daily resistance extended from the low 1.0821.
Our suggestions: Despite weekly action now kissing the underside of a weekly , we feel the unit may want to pop higher before rotating south. Ultimately, we have set a pending sell order at 1.1362, with a stop above the high 1.1427. Building a case for entry we have the following:
• H4 Quasimodo resistance at 1.1382.
• Nice-looking H4 pattern which shows completion around the 1.1367ish range (H4 88.6% Fib resistance/H4 161.8% Fib extension).
• Psychological resistance at 1.14.
• Daily supply area at 1.1446-1.1369 which encapsulates the H4 Quasimodo sell line.
• Daily resistance which fuses beautifully with the H4 Quasimodo sell line.
• And finally let’s not forget that all of the above is housed within the aforementioned weekly resistance area!