Weekly price, as you can see, continues to trade in the direction of a weekly trendline support etched from the low 98.78, followed closely by a weekly support area at 105.19-107.54. Turning our attention to the daily timeframe, however, we can see that price is currently trading within shouting distance of support at 108.78, thanks to yesterday’s break of daily support (now acting resistance) at 110.21.
Across the pond on the H4 timeframe, the candles are seen attempting to recover from the 109 handle. However, there’s also a H4 resistance area in play at 109.23-109.54 which could potentially hinder upside. Also something to keep an eyeball on today is a possible (deep) fakeout through 109 to test daily support at 108.78.
Market direction:
A correction from 108.78/1.09 is likely on the cards. How high price will reach, however, is difficult to judge, since let’s keep in mind that weekly sellers threaten lower prices.
With the H4 candles seen sandwiched between the noted H4 resistance area and round number, there’s not much on offer as far as trading setups go. Even with a break below 109, one is immediately placed in direct conflict with daily support. The same can be said for a break above the current H4 resistance area, as 110 lurks just ahead.
Data points to consider: US unemployment claims at 1.30pm; US new home sales at 3pm GMT.
Areas worthy of attention:
Supports: 109 handle; 108.78; Weekly trendline support; 105.19-107.54.
Resistances: 109.23-109.54; 110 handle; 110.21.
Across the pond on the H4 timeframe, the candles are seen attempting to recover from the 109 handle. However, there’s also a H4 resistance area in play at 109.23-109.54 which could potentially hinder upside. Also something to keep an eyeball on today is a possible (deep) fakeout through 109 to test daily support at 108.78.
Market direction:
A correction from 108.78/1.09 is likely on the cards. How high price will reach, however, is difficult to judge, since let’s keep in mind that weekly sellers threaten lower prices.
With the H4 candles seen sandwiched between the noted H4 resistance area and round number, there’s not much on offer as far as trading setups go. Even with a break below 109, one is immediately placed in direct conflict with daily support. The same can be said for a break above the current H4 resistance area, as 110 lurks just ahead.
Data points to consider: US unemployment claims at 1.30pm; US new home sales at 3pm GMT.
Areas worthy of attention:
Supports: 109 handle; 108.78; Weekly trendline support; 105.19-107.54.
Resistances: 109.23-109.54; 110 handle; 110.21.
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