Weekly gain/loss: + 285 pips
Weekly closing price: 1.2806
The weekly trendline resistance extended from the high 1.2774 was aggressively taken out last week, thus allowing weekly price to marginally close beyond resistance at 1.2789. This could, technically speaking, imply that the buyers might look to challenge supply this week at 1.3120-1.2957.
Since Tuesday, the daily candles have been consolidating between a support established from the 6th December high 1.2774 and a 61.8% Fib resistance (green line) at 1.2859 (taken from the high 1.3445). Also noteworthy here is the nearby 161.8% Fib extension at 1.2920 drawn from the low 1.2108 (brown line).
A quick recap of Friday’s trading on the H4 chart shows that price dropped to a fresh low of 1.2756 going into the early hours of the US segment. Leaving the mid-level support 1.2750 unchallenged, the unit ended the week closing six pips above 1.28.
Based on this recent movement, the crosshairs are fixed on 1.2750 (green area) for an intraday bounce north today. Why here? Well, not only are mid-level numbers watched by the majority of the market, there’s also a H4 AB=CD 127.2% Fib extension seen nearby at 1.2736 (drawn from the high 1.29) that unites closely with a broken Quasimodo line pegged at 1.2744.
Our suggestions: Our rationale behind looking for a bounce off 1.2736/1.2750, apart from the H4 confluence, is also the fact that this zone is planted directly beneath the current daily support. Therefore, it may perhaps be a fantastic base to help facilitate a fakeout! The only grumble, of course, is that weekly sellers could still be active from resistance mentioned above at 1.2789, hence the reason for not expecting much more than an intraday bounce from this region!
Data points to consider: FOMC member Kashkari speaks at 4.30 and again at 8.30pm GMT+1.
Levels to watch/live orders:
• Buys: 1.2736/1.2750 (dependent on the time of day, this small zone could be stable enough to consider an intraday trade long from, stop loss: at least five pips beyond the lower edge).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 1.2806
The weekly trendline resistance extended from the high 1.2774 was aggressively taken out last week, thus allowing weekly price to marginally close beyond resistance at 1.2789. This could, technically speaking, imply that the buyers might look to challenge supply this week at 1.3120-1.2957.
Since Tuesday, the daily candles have been consolidating between a support established from the 6th December high 1.2774 and a 61.8% Fib resistance (green line) at 1.2859 (taken from the high 1.3445). Also noteworthy here is the nearby 161.8% Fib extension at 1.2920 drawn from the low 1.2108 (brown line).
A quick recap of Friday’s trading on the H4 chart shows that price dropped to a fresh low of 1.2756 going into the early hours of the US segment. Leaving the mid-level support 1.2750 unchallenged, the unit ended the week closing six pips above 1.28.
Based on this recent movement, the crosshairs are fixed on 1.2750 (green area) for an intraday bounce north today. Why here? Well, not only are mid-level numbers watched by the majority of the market, there’s also a H4 AB=CD 127.2% Fib extension seen nearby at 1.2736 (drawn from the high 1.29) that unites closely with a broken Quasimodo line pegged at 1.2744.
Our suggestions: Our rationale behind looking for a bounce off 1.2736/1.2750, apart from the H4 confluence, is also the fact that this zone is planted directly beneath the current daily support. Therefore, it may perhaps be a fantastic base to help facilitate a fakeout! The only grumble, of course, is that weekly sellers could still be active from resistance mentioned above at 1.2789, hence the reason for not expecting much more than an intraday bounce from this region!
Data points to consider: FOMC member Kashkari speaks at 4.30 and again at 8.30pm GMT+1.
Levels to watch/live orders:
• Buys: 1.2736/1.2750 (dependent on the time of day, this small zone could be stable enough to consider an intraday trade long from, stop loss: at least five pips beyond the lower edge).
• Sells: Flat (stop loss: N/A).
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