With the dollar surging higher across the board yesterday, this saw the H4 break through the 105 handle and clock a high of 105.34 by the day’s end. As we mentioned in yesterday’s report, we were looking to short between the 105.25/1.05 region, on the condition that a H4 close was seen. As you can see, the bears showed little interest here so we passed.
Our suggestions: We’re sure most will agree, at least from a technical (structural) standpoint that this pair is overbought right now. Back-to-back higher-timeframe supplies coupled with a close below the 105 handle would, in our book, be enough to confirm lower prices are on the cards. However, in regards to entry, our team will be looking for price to retest the underside of 105, along with a H4 close. Only then will our team be clear for entry. This may not come into view today considering we only have the US advance GDP report at 12.30pm GMT on the docket, but will be something to look forward to next week.