Shorts between 1.2550/1.2514 look attractive...
Weekly gain/loss: - 89 pips
Weekly closing price: 1.2482
Weekly view: Following the selloff from just ahead of resistance seen at 1.2789 two weeks back, the pair, bolstered by the Fed’s decision to hike rates, continued to slide lower last week. Since July 2014, this market has been entrenched within a downward trajectory. Providing that the current resistance line maintains a defense, fresh lows beyond support at 1.1904 could be on the hit list in the near future.
Daily view: Demand at 1.2385-1.2465, as you can see, managed to cap downside going into Thursday’s close which followed through with an upside rotation on Friday. Trimming around 50% of Thursday’s losses, Friday’s move could spark a further round of buying from this base today/this week up to resistance seen at 1.2557. A break above here, however, will likely see price shake hands with supply marked at 1.2727-1.2657. In the event that the bulls are unable to sustain Friday’s momentum, nonetheless, a drop below the demand area to a nearby Quasimodo support level at 1.2351 may come into view.
H4 view: During the early hours of Friday’s US session, the H4 candles shifted northbound and ended the week bumping heads with the psychological resistance level 1.25. Although this boundary held going into the week’s closing bell, there’s a far more appealing area seen just above (green rectangle) between the mid-way resistance 1.2550 and December’s opening level at 1.2514, which houses two trendline resistances taken from the lows 1.2559/1.2113.
Direction for the week: With buying currently being seen from daily demand and further selling over on the weekly chart, our team has stamped medium-term direction as restricted for the time being.
Direction for today: While the bears established minor resistance around 1.25 late Friday, we feel price will break above this hurdle today and attack offers seen within our aforementioned H4 sell zone.
Our suggestions: Selling from the above noted H4 sell zone is, of course, an option today. We’re confident that a bounce will be seen from this region given the direction of the weekly candles at the moment. Be that as it may, there is a risk of daily buyers forcing price beyond this zone seeing as how the daily resistance level is positioned just 7 pips above it! As a result, the H4 area will only be considered a valid base to sell from if, and only if, a reasonably sized H4 bearish close is seen from here.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.2550/1.2514 (reasonably sized H4 bearish close required prior to pulling the trigger, stop loss: ideally beyond the trigger candle).
Weekly closing price: 1.2482
Weekly view: Following the selloff from just ahead of resistance seen at 1.2789 two weeks back, the pair, bolstered by the Fed’s decision to hike rates, continued to slide lower last week. Since July 2014, this market has been entrenched within a downward trajectory. Providing that the current resistance line maintains a defense, fresh lows beyond support at 1.1904 could be on the hit list in the near future.
Daily view: Demand at 1.2385-1.2465, as you can see, managed to cap downside going into Thursday’s close which followed through with an upside rotation on Friday. Trimming around 50% of Thursday’s losses, Friday’s move could spark a further round of buying from this base today/this week up to resistance seen at 1.2557. A break above here, however, will likely see price shake hands with supply marked at 1.2727-1.2657. In the event that the bulls are unable to sustain Friday’s momentum, nonetheless, a drop below the demand area to a nearby Quasimodo support level at 1.2351 may come into view.
H4 view: During the early hours of Friday’s US session, the H4 candles shifted northbound and ended the week bumping heads with the psychological resistance level 1.25. Although this boundary held going into the week’s closing bell, there’s a far more appealing area seen just above (green rectangle) between the mid-way resistance 1.2550 and December’s opening level at 1.2514, which houses two trendline resistances taken from the lows 1.2559/1.2113.
Direction for the week: With buying currently being seen from daily demand and further selling over on the weekly chart, our team has stamped medium-term direction as restricted for the time being.
Direction for today: While the bears established minor resistance around 1.25 late Friday, we feel price will break above this hurdle today and attack offers seen within our aforementioned H4 sell zone.
Our suggestions: Selling from the above noted H4 sell zone is, of course, an option today. We’re confident that a bounce will be seen from this region given the direction of the weekly candles at the moment. Be that as it may, there is a risk of daily buyers forcing price beyond this zone seeing as how the daily resistance level is positioned just 7 pips above it! As a result, the H4 area will only be considered a valid base to sell from if, and only if, a reasonably sized H4 bearish close is seen from here.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.2550/1.2514 (reasonably sized H4 bearish close required prior to pulling the trigger, stop loss: ideally beyond the trigger candle).
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.