Our suggestions: Even though the weekly chart suggests further selling may be on the cards, our desk has noted a particularly interesting H4 buy zone. Consisting of a H4 at 0.9713, a H4 78.6% Fib at 0.9716, a H4 support taken from the low 0.9537 and the 0.97 handle, which is topped off by being housed within the top edge of the above mentioned daily . For that reason, we feel a bounce from this region will likely take place. However, knowing that we are effectively buying against weekly sellers here, it would be prudent to wait for at least a H4 close to form prior to pulling the trigger.
Data points to consider: US ADP employment change at 12.15pm along with the decision and statement from the FOMC at 6pm GMT .
Levels to watch/live orders:
• Buys: 0.97/0.9716 area (H4 close required, stop loss: ideally beyond the trigger candle).
• Sells: Flat (stop loss: N/A).