However, last Tuesday’s session appears to have closed back below 0.7040/5. This suggests that the Monday break above the area was a false move.
Furthermore, the final 72 hours of activity last week was once again capped by 0.7040/5 on a daily closing basis. The result was a weekly , albeit not at a major swing high.
Fast forward to today, and we can see that buyers are once again challenging the level. But as you may well know, I don’t pay much attention to intraday breaks such as this. Where the pair closes the session at 5 pm EST is much more important.
For now, I’ll remain on the sideline until we have a clear indication of whether 0.7040/5 is holding as new resistance. If so, we could have a selling opportunity on our hands.
Otherwise, a close back above the area would pave the way for a retest of 0.7133. This level served as support on two occasions in the second half of February and again on March 1st.
Weekly forecasts here: http://bit.ly/2f3n66Q
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