Beginning with a look at the weekly timeframe this morning, it’s clear that the bears are beginning to make an appearance around supply at 115.50-113.85. Should this area hold firm, the next downside target, apart from the weekly low of 108.13, is the support area coming in at 105.19-107.54. Daily price on the other hand, shows us that the unit is trading within touching distance of a support area at 111.35-112.37, which happens to hold a 38.2% Fib support at 111.96 marked from the low 108.13.
Over on the H4 chart, we can see price recently breached the 113 handle and is now seen testing the H4 demand base coming in at 112.39-112.71. What’s also notable from a technical perspective is the 1:1 correction (black arrows) and the 161.8% Fib ext. at 112.32 taken from the high 114.36.
Our suggestions: Although weekly action is currently trading from supply right now, there’s still a reasonable chance that price will bounce from the daily support area. The above noted 161.8% H4 Fib ext. is attractive for longs due to it sitting within the daily support base. Entering long using a pending order here, however, would be chancy given the weekly picture. For this reason, we’re going to sit on our hands and patiently wait for additional confirmation in the form of a reasonably sized H4 bullish candle (preferably a full-bodied candle) before pulling the trigger.
Data points to consider: No high-impacting news on the docket today.
Over on the H4 chart, we can see price recently breached the 113 handle and is now seen testing the H4 demand base coming in at 112.39-112.71. What’s also notable from a technical perspective is the 1:1 correction (black arrows) and the 161.8% Fib ext. at 112.32 taken from the high 114.36.
Our suggestions: Although weekly action is currently trading from supply right now, there’s still a reasonable chance that price will bounce from the daily support area. The above noted 161.8% H4 Fib ext. is attractive for longs due to it sitting within the daily support base. Entering long using a pending order here, however, would be chancy given the weekly picture. For this reason, we’re going to sit on our hands and patiently wait for additional confirmation in the form of a reasonably sized H4 bullish candle (preferably a full-bodied candle) before pulling the trigger.
Data points to consider: No high-impacting news on the docket today.
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