Weekly gain/loss: - 8 pips
Weekly closing price: 116.89
During the course of last week’s session, the pair printed a clear-cut weekly indecision candle. With a range stretching over 350 pips, price touched the underside of a weekly supply at 121.68-118.61, pierced weekly support at 116.08 and closed the week just below the 2017 yearly opening level at 116.97. Should a close below the current weekly support come into view this week, we would be looking toward a rather hefty selloff down to the weekly support area at 111.44-110.10.
Casting our lines down to the daily chart, recent movement shows that price slammed on the breaks and reversed from daily demand at 114.73-115.47. The next upside objective from this angle is 118.20: a daily resistance that shows good historical significance. However, with the 2017 yearly opening level lurking nearby, dollar bids may struggle to reach 118.20 this week.
Stepping across to the H4 chart, Friday’s session struck highs of 117.17, following an extension of Thursday’s bounce from H4 demand at 114.77-115.18. The greenback was bolstered by US labor data. Although the US economy added fewer jobs than originally projected, US average hourly earnings helped provide support as the reading came in better than expected at 0.4%.
Our suggestions: Given the H4 bearish selling wick seen piercing through both January’s opening level at 116.97/117 handle, which also came within an inch of connecting with a H4 trendline resistance taken from the high 118.40, one may consider selling this market today. There are, nevertheless, two cautionary points to consider. Firstly, directly below current price we have a H4 support area at 116.79-116.47, and secondly, let’s not forget that daily action recently bounced from a daily demand area (see above). As such, from our perspective, shorting this market is just too risky at this time. Buying on the other hand could be something to consider following a H4 close beyond the aforementioned H4 trendline resistance, as the path north appears relatively clear thereafter up to the 118 barrier.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Watch for a H4 close above the aforementioned H4 trendline resistance and look to trade any retest seen thereafter (reasonably sized H4 bullish candle is required following the retest before our team will consider pulling the trigger, stop loss: ideally beyond the trigger candle).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 116.89
During the course of last week’s session, the pair printed a clear-cut weekly indecision candle. With a range stretching over 350 pips, price touched the underside of a weekly supply at 121.68-118.61, pierced weekly support at 116.08 and closed the week just below the 2017 yearly opening level at 116.97. Should a close below the current weekly support come into view this week, we would be looking toward a rather hefty selloff down to the weekly support area at 111.44-110.10.
Casting our lines down to the daily chart, recent movement shows that price slammed on the breaks and reversed from daily demand at 114.73-115.47. The next upside objective from this angle is 118.20: a daily resistance that shows good historical significance. However, with the 2017 yearly opening level lurking nearby, dollar bids may struggle to reach 118.20 this week.
Stepping across to the H4 chart, Friday’s session struck highs of 117.17, following an extension of Thursday’s bounce from H4 demand at 114.77-115.18. The greenback was bolstered by US labor data. Although the US economy added fewer jobs than originally projected, US average hourly earnings helped provide support as the reading came in better than expected at 0.4%.
Our suggestions: Given the H4 bearish selling wick seen piercing through both January’s opening level at 116.97/117 handle, which also came within an inch of connecting with a H4 trendline resistance taken from the high 118.40, one may consider selling this market today. There are, nevertheless, two cautionary points to consider. Firstly, directly below current price we have a H4 support area at 116.79-116.47, and secondly, let’s not forget that daily action recently bounced from a daily demand area (see above). As such, from our perspective, shorting this market is just too risky at this time. Buying on the other hand could be something to consider following a H4 close beyond the aforementioned H4 trendline resistance, as the path north appears relatively clear thereafter up to the 118 barrier.
Data points to consider: There are no high-impacting news events on the docket today relating to these two markets.
Levels to watch/live orders:
• Buys: Watch for a H4 close above the aforementioned H4 trendline resistance and look to trade any retest seen thereafter (reasonably sized H4 bullish candle is required following the retest before our team will consider pulling the trigger, stop loss: ideally beyond the trigger candle).
• Sells: Flat (stop loss: N/A).
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