Kicking this morning’s report off with a quick look-see at the weekly chart shows that the pair remains hovering above the 2016 yearly opening level at 1.0873/ resistance at 1.0819. However, it might be worth waiting for the weekly candle to close shop before presuming that these said resistances are consumed. Down on the daily candles we can see that price has spent last two days easing from a trendline resistance extended from the high 1.0828. Consequent to this, the unit is now positioned within inches of support coming in at 1.0850.
After failing to sustain gains beyond the 1.09 handle yesterday, H4 bears clocked a low of 1.0851. While a bounce from this region could be seen given the aforementioned daily support in play at the moment, the 1.08 handle also looks a reasonable possibility for a bounce.
Our suggestions: Why the 1.08 boundary? Well, It converges beautifully with February’s opening level at 1.0801, a H4 AB=CD 161.8% Fib at 1.0794 taken from the high 1.0949 and a H4 61.8% Fib retracement at 1.0784 drawn from the low 1.0682. What’s more, notice a daily support is seen just below it at 1.0776 (the next support below the current daily level mentioned above). So, while price could obviously ignore 1.08 today and rally from the current daily support, we feel the 1.08 level quite simply has more to offer and is worth the wait.
Data points to consider: US Advance GDP figures at 1.30pm, FOMC member Brainard speaks at 6.15 pm, closely followed by FOMC member Harker who speaks 7.30pmGMT+1.
Levels to watch/live orders:
• Buys: 1.0776/1.08 (dependent on the time of day, a long from here is possible without the need for additional confirmation, stop loss: 1.0773).
• Sells: Flat (stop loss: N/A).
After failing to sustain gains beyond the 1.09 handle yesterday, H4 bears clocked a low of 1.0851. While a bounce from this region could be seen given the aforementioned daily support in play at the moment, the 1.08 handle also looks a reasonable possibility for a bounce.
Our suggestions: Why the 1.08 boundary? Well, It converges beautifully with February’s opening level at 1.0801, a H4 AB=CD 161.8% Fib at 1.0794 taken from the high 1.0949 and a H4 61.8% Fib retracement at 1.0784 drawn from the low 1.0682. What’s more, notice a daily support is seen just below it at 1.0776 (the next support below the current daily level mentioned above). So, while price could obviously ignore 1.08 today and rally from the current daily support, we feel the 1.08 level quite simply has more to offer and is worth the wait.
Data points to consider: US Advance GDP figures at 1.30pm, FOMC member Brainard speaks at 6.15 pm, closely followed by FOMC member Harker who speaks 7.30pmGMT+1.
Levels to watch/live orders:
• Buys: 1.0776/1.08 (dependent on the time of day, a long from here is possible without the need for additional confirmation, stop loss: 1.0773).
• Sells: Flat (stop loss: N/A).
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