In recent trading, we saw the USD plummet on the back of week US data, taking out the 103 handle, the H4 mid-way support 102.50 and just recently the H4 demand base seen at 101.74-101.90. With a truckload of buyers likely taken out from this recent move, there is space now seen to move lower down to test the H4 support 100.87. In addition to this, a minor daily support level at 102.38 was also engulfed during yesterday’s selling, which, as you can probably see, has opened the path down to weekly support coming in at 100.61.
Our suggestions: Between the current weekly support and H4 support (100.61/100.87), there is a good chance that price will bounce from this region should the couple strike this area today. Bolstered by a H4 trendline support taken from the low 99.64 as well as a H4 78.6% Fib support at 100.56, this area has sufficient confluence, in our opinion, to condone a pending buy order with a stop placed at 100.48.
Our suggestions: Between the current weekly support and H4 support (100.61/100.87), there is a good chance that price will bounce from this region should the couple strike this area today. Bolstered by a H4 trendline support taken from the low 99.64 as well as a H4 78.6% Fib support at 100.56, this area has sufficient confluence, in our opinion, to condone a pending buy order with a stop placed at 100.48.
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