Short @ confluence from 0.9790

For those who read Thursday’s report you may recall that our desk highlighted a possible sell trade from H4 supply at 0.9808-0.9787 (pending sell order at 0.9790 – stop loss at 0.9810).

Our reasoning behind this trade call was as follows:

• High on the curve, the weekly candles are seen bumping heads with the underside of a trendline resistance extended from the low 0.9257.
• At the time, daily action was trading beneath resistance at 0.9770. Unfortunately price closed above this line during yesterday’s sessions.
• Over on the H4 timeframe, the aforementioned supply is seen converging with the 0.98 handle and two channel resistances etched from highs of 0.9705/0.9746.

Suggestions: Owing to the collective resistances, we entered short at 0.9790 and placed the stop-loss order above the current H4 supply at 0.9810. Ideally, we’re looking for the unit to move down to at least the 0.9750 region as we can then reduce risk to breakeven ahead of today’s US job’s numbers.

Data points to consider: US Employment figures at 1.30pm; FOMC members Dudley and Kaplan take the stage at 5.15pm/5.45pm GMT+1.