Over on the H4 timeframe, however, price action looks poised to extend lower to test 0.7377/0.74. This area is comprised of the following structures:
• 0.74 handle.
• H4 61.8% Fib support at 0.74 taken from the low 0.7328.
• A H4 Quasimodo support at 0.7394.
• A H4 at 0.7398-0.7377.
• A H4 (black arrows) 127.2% ext. at 0.7389 drawn from the high 0.7515.
Our suggestions: Although the noted H4 buy zone marked in green will likely bounce price, it unfortunately lacks higher-timeframe support. The closest support on the bigger picture comes in at the said daily . Therefore, to enter long from 0.7377/0.74, we would require at least a H4 candle to form within this zone (preferably a full-bodied candle) to prove buyer interest exists before committing to a long. The first take-profit target, should a trade come to fruition here, is likely to be the H4 mid-level resistance at 0.7450.
Data points to consider: Australian Private capital expenditure and Retail sales at 2.30am. US ADP non-farm employment change at 1.15pm, US weekly unemployment claims at 1.30pm and US ISM Manufacturing PMI figures at 3pm GMT+1.