Ultimately, what we have been looking for recently is a break BELOW this 4Hr (IQM), since the path appears relatively clear beneath this number down to 0.9600 – a nice take-profit target. In the event that a drive lower is seen and price retests this boundary as resistance, we’d likely enter short if there is corresponding lower timeframe confirmation present.
Supporting further selling in this market, we can see that price is holding below a weekly swap (resistance) level at 0.9796. However, against a push lower, there’s supportive pressure flowing in from the at a swap (support) barrier coming in at 0.9670. Should a decisive push below the 4hr (IQM) be seen, nonetheless, we believe most of the bids around this daily area will be consumed, thus, at least from a technical standpoint, this market will be free to drop down to our target – 0.9600.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Watch for bids at 0.9670 to be consumed and then look to enter on any retest seen at this number (confirmation required).