Sells from 110.50 look incredibly attractive!

2017년 8월 15일

The US dollar made considerable ground against the Japanese yen on Monday, as geopolitical tensions eased between the US and North Korea (Bloomberg). As you can probably see, this has placed the H4 candles above the 110 handle and in-line for an attack of August’s opening level at 110.30, followed closely by the mid-level resistance at 110.50. What’s also notable from here is the AB=CD completion point at 110.50 (black arrows – 161.8% Fib ext.), the 78.6% Fib resistance at 110.55 (basically representing a Gartley Harmonic sell zone) and a channel resistance extended from the high 111.71.

While a short from the green H4 zone is incredibly tempting, traders may want to consider that weekly action is currently trading from demand at 108.13-108.95. Further adding to this, we do not see much in the way of resistance on the daily timeframe until we meet 110.76.

Suggestions: Despite weekly price trading from demand, a sell from the 110.50 neighborhood on the H4 timeframe is still interesting. Stops will, however, have to be positioned above June’s opening level at 110.80, thus clearing daily resistance at 110.76. The ultimate target from here would, from our perspective, be the neighboring channel support stretched from the low 110.30.

Data points to consider: US Core retail sales figures at 1.30pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 110.50 region (stop loss: 110.80).