Branching lower to the , demand at 0.9851-0.9926, as you can see, provided a floor for this market to bounce north from on Monday, reaching highs of 1.0106 by Wednesday (a few pips below the seen at 1.0123). At this point, we see little takeaway from this chart other than to keep a close eye on both of these areas this week, since one or both will likely come into play.
Stepping down one more level to the H4, we can see that this pair has entered into a phase of consolidation between 0.9931/1.0100. All this means now, at least for us, is any level within this range is considered to be mid-range as we always target the extremes.
That being the case, here is what our team is looking at going into this week:
• Between 0.9931 and psychological support 0.9900. Not only is this the extreme of the current range, but it also converges with a Fibonacci 78.6 retracement at 0.9925 and molds together with both the weekly and daily support structures mentioned above (0.9796-0.9902/0.9851-0.9926).
• Between psychological resistance 1.0100 and daily resistance at 1.0123 (boasts a 61.8% at 1.0122).
Levels to watch/live orders:
• Buys: 0.9900/0.9931 region Tentative – confirmation preferred (Stop loss: dependent on where one confirms this area).
• Sells: 1.0100/1.0123 region Tentative – confirmation preferred (Stop loss: dependent on where one confirms this area).