Across the pond on the H4 timeframe, the candles are seen attempting to recover from the 109 handle. However, there’s also a H4 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.
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 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 , 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 support; 105.19-107.54.
Resistances: 109.23-109.54; 110 handle; 110.21.