Breaking a six-day bearish phase, the commodity-linked currency printed a healthy recovery during Tuesday’s segment from the top edge of a daily demand base penciled in at 0.7807-0.7841. From the daily scale, technicals suggest further buying up to a daily resistance area at 0.7986-0.7951 is a possibility.
H4 price found a pocket of strong bids around the H4 mid-level support at 0.7850 on Tuesday, and concluded trade closing marginally above the 0.79 handle. As we write, though, H4 sellers are in play and currently pushing the action sub 0.79. Also worth noting is that weekly price shows room to press as far south as the 2018 yearly opening level at 0.7801.
Potential trading zones:
Ultimately, there’s very little to hang our hat on as far as trading setups are concerned. Structure is somewhat restricted. Daily price indicates a potential continuation to the upside, while weekly action portends further downside. This – coupled with H4 price filtering around a psychological band which, as far as we can see, offers little trade confluence – is a market that may be best placed on the back burner today.
Data points to consider: FOMC member Dudley speaks at 1.30pm; FOMC member Williams speaks at 10.20pm GMT.
H4 price found a pocket of strong bids around the H4 mid-level support at 0.7850 on Tuesday, and concluded trade closing marginally above the 0.79 handle. As we write, though, H4 sellers are in play and currently pushing the action sub 0.79. Also worth noting is that weekly price shows room to press as far south as the 2018 yearly opening level at 0.7801.
Potential trading zones:
Ultimately, there’s very little to hang our hat on as far as trading setups are concerned. Structure is somewhat restricted. Daily price indicates a potential continuation to the upside, while weekly action portends further downside. This – coupled with H4 price filtering around a psychological band which, as far as we can see, offers little trade confluence – is a market that may be best placed on the back burner today.
Data points to consider: FOMC member Dudley speaks at 1.30pm; FOMC member Williams speaks at 10.20pm GMT.
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