Whether or not 0.77 can bounce prices back up to 0.7743 (a broken Quasimodo line that’s positioned nearby mid-level resistance 0.7750 and daily resistance at 0.7740) is difficult to judge at this point. We say this simply because weekly price shows room to extend losses down to a support etched from the high 0.7835, along with daily price also showing space to punch down to demand pegged at 0.7571-0.7623.
Suggestions: Should H4 price retest 0.7743, this would be a line we would consider shorting if a full or near-full-bodied candle took shape. In the event that 0.77 fails to hold, nevertheless, the next downside target beyond this number can be seen at 0.7632: a H4 that’s positioned just ahead of the noted daily demand. Therefore, shorts on any retest of 0.77 could also be an option today.
Data points to consider: RBA Assist Gov . Debelle speaks at 8.45am; US unemployment claims at 1.30pm; US pending home sales m/m at 3pm GMT+1.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 0.7743 region (waiting for a reasonably sized H4 candle to form – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick). Watch for H4 price to engulf 0.77 and then look to trade any retest of this level seen thereafter (waiting for a reasonably sized H4 candle to form following the retest – preferably a full or near-full-bodied candle – is advised, stop loss: ideally beyond the candle’s wick).