Highly confluent zone seen on the Swissy for shorts!

2017年2月23日

The pair began the session robustly, though one price struck highs of 1.0140 it spent the rest of the day receding lower. As you can see, the H4 demand at 1.0077-1.0093 is currently supporting this market which could, given that there is room to move north on both the weekly and the daily charts (up to the 2017 yearly opening level at 1.0175/ daily supply at 1.0248-1.0168), eventually see the bulls take things higher from here.

This begs the question, would we consider a buy from this angle? While there is, technically speaking, little wrong with this zone, we have our eyes on the 1.0197/1.0170 neighborhood for a sell. This area brings together a collection of noteworthy resistances:

• A H4 channel resistance extended from the high 1.0044.
• A H4 Quasimodo resistance at 1.0197.
• December and January’s opening levels at 1.0175/1.0170.
• A potential H4 AB=CD (see black arrows) 127.2% ext. at 1.0172.
• A minor H4 161.8% Fib ext. taken from the low 1.0077 at 1.0181.
• Located within the lower limits of a daily supply zone coming in at 1.0248-1.0168.

Our suggestions: In light of the strong confluence noted above, our desk has set a pending sell order at 1.0170 with a stop placed 5 pips above 1.02.

Data points to consider: US Jobless claims at 1.30pm, FOMC member Kaplan speaks at 6pm GMT.