H4 price edged its way beneath the 0.96 handle as we moved into US trading yesterday. This number, as you can see, has so far provided resistance to the market. The next area of concern below can be seen at the H4 mid-level support at 0.9550 – just underneath the current daily demand.
Further upside is hindered by the 0.96 barrier and threat of further selling on the , whereas, further downside is restricted by the aforementioned daily demand base!
Whichever direction one selects today, you’ll face potentially strong opposition. Without a clear path free of nearby structure, opting to remain on the sidelines may be the better path to take.
Data points to consider: US prelim UoM consumer sentiment at 3pm followed by FOMC member Quarles speaking at 5.15pm; CHF PPI m/m at 8.15am GMT .
Areas worthy of attention:
Supports: 0.9443-0.9515; 0.9565-0.9611; 0.9575.
Resistances: 0.96 handle; 0.9711; 0.9744.