On the back of a robust US dollar, the current weekly candle now looks set to collide with supply coming in at 1.0092-0.9928, which has capped upside in this market since mid-May 2016. The break of the daily trendline resistance extended from the high 1.0256 on Monday also seems to have played a (technical) part in yesterday’s advance. The next upside target from current price on the daily timeframe is a supply zone at 0.9956-0.9921 that is glued to the underside of the aforementioned weekly supply area.
Looking over to the H4 candles, the pair topped out just ahead of the 0.99 handle during yesterday’s US morning session, following an aggressive push through offers at 0.9863: a H4 Quasimodo resistance (now acting support).
Our suggestions: In light of the notes above, we believe there’s equal opportunity for both longs and shorts today.
• A long trade could be possible from the H4 broken Quasimodo level at 0.9863, if, and only if, price does not strike 0.99 beforehand. We would also advise waiting for lower timeframe confirmation here, due to the possibility of a fakeout through this level. Targets from this boundary would, of course, be the 0.99 number, followed by 0.9927: a H4 Quasimodo resistance line which merges with the underside of both the above said weekly and daily supplies.
• In regard to shorting this market, the H4 Quasimodo resistance at 0.9927 is, at least in our opinion, a prime location for sells, due to its connection with the higher-timeframe supplies. We would, dependent on the time of day, look to short from here at market with stops placed above the apex of the Quasimodo formation (0.9950) at 0.9955.
Looking over to the H4 candles, the pair topped out just ahead of the 0.99 handle during yesterday’s US morning session, following an aggressive push through offers at 0.9863: a H4 Quasimodo resistance (now acting support).
Our suggestions: In light of the notes above, we believe there’s equal opportunity for both longs and shorts today.
• A long trade could be possible from the H4 broken Quasimodo level at 0.9863, if, and only if, price does not strike 0.99 beforehand. We would also advise waiting for lower timeframe confirmation here, due to the possibility of a fakeout through this level. Targets from this boundary would, of course, be the 0.99 number, followed by 0.9927: a H4 Quasimodo resistance line which merges with the underside of both the above said weekly and daily supplies.
• In regard to shorting this market, the H4 Quasimodo resistance at 0.9927 is, at least in our opinion, a prime location for sells, due to its connection with the higher-timeframe supplies. We would, dependent on the time of day, look to short from here at market with stops placed above the apex of the Quasimodo formation (0.9950) at 0.9955.
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