A stronger-than-expected bounce has been seen from the weekly support area at 0.9443-0.9515, consequently forcing daily action to challenge supply at 0.9738-0.9691. This area also happens to converge with a daily channel resistance extended from the high 0.9808 and a daily 38.2% Fib resistance at 0.9693 taken from the high 1.0099.
Although weekly price looks bull strong at the moment, the confluence surrounding the daily supply zone, coupled with H4 price reacting so well off of a minor trendline resistance extended from the low 0.9675 seen positioned just above 0.97, strongly suggests that sellers may make an appearance.
Our suggestions: We have entered short at 0.9694 and placed the stop above the current daily supply at 0.9740, with an overall target objective set at 0.9546: a daily support level. Should the trade come to fruition, this will net over three times our initial risk.
Data points to consider: US Advance GDP figures q/q at 1.30pm, FOMC member Kashkari speaks at 6.20pm GMT+1.
Although weekly price looks bull strong at the moment, the confluence surrounding the daily supply zone, coupled with H4 price reacting so well off of a minor trendline resistance extended from the low 0.9675 seen positioned just above 0.97, strongly suggests that sellers may make an appearance.
Our suggestions: We have entered short at 0.9694 and placed the stop above the current daily supply at 0.9740, with an overall target objective set at 0.9546: a daily support level. Should the trade come to fruition, this will net over three times our initial risk.
Data points to consider: US Advance GDP figures q/q at 1.30pm, FOMC member Kashkari speaks at 6.20pm GMT+1.
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