Consequent to this move, the key figure 1.30 was taken out and price collided with a rather ugly-looking H4 demand seen marked with a black arrow at 1.2926-1.2973. To our way of seeing things, 1.30 is likely to hold as resistance due to the following reasons:
1. Weekly price is aggressively selling off from weekly supply at 1.3295-1.3017, and has already erased last week’s gains.
2. The recent selling saw price take out a daily support extended from the low 1.2460, and as a result, potentially opened up the path south for further selling down to a minor daily support taken from the low 1.2831.
Our suggestions: Quite simply, look for shorts around the underside of 1.30 today. Waiting for a lower timeframe sell signal prior to pulling the trigger is still recommended since a whipsaw through this number is expected. Given the higher-timeframe picture (see above), we’re looking down to around the 1.29ish region to take profit.