1.08 threshold looks tasty for shorts today...
Across the board, we saw the US dollar wane against the majority of its trading peers. This forced the single currency to attack and eventually close beyond the 1.07 handle on the H4 chart, and end the day closing above daily resistance coming in at 1.0710 (now acting support). In addition to this, Monday’s movement has placed weekly action within touching distance of the long-term weekly trendline resistance extended from the low 0.8231, followed closely by weekly resistance seen at 1.0819.
To our way of seeing things, the closest resistance in view is positioned around the 1.08 region. Not only does 1.08 sit nearby a H4 Quasimodo resistance level at 1.0796, it also boasts a deep 88.6% Fib resistance at 1.0809 and is planted nearby the above noted weekly resistance at 1.0819 and adjacent weekly trendline resistance (green rectangle – H4 chart).
Our suggestions: In light of the supporting confluence seen around the 1.08 neighborhood, our desk has noted that should price connect with the above noted green area today, we would, dependent on the time of day, look to enter short at market, targeting the nearest H4 demand formed on approach.
Data points to consider: Eurozone PMI data hitting the wires between 8am/9am, as well as the EU court membership ruling at 9.30am.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.08 region (dependent on the time of day, this is an area we would consider trading without confirmation, stop loss: 1.0825 aggressive stop, 1.0875 conservative stop).
To our way of seeing things, the closest resistance in view is positioned around the 1.08 region. Not only does 1.08 sit nearby a H4 Quasimodo resistance level at 1.0796, it also boasts a deep 88.6% Fib resistance at 1.0809 and is planted nearby the above noted weekly resistance at 1.0819 and adjacent weekly trendline resistance (green rectangle – H4 chart).
Our suggestions: In light of the supporting confluence seen around the 1.08 neighborhood, our desk has noted that should price connect with the above noted green area today, we would, dependent on the time of day, look to enter short at market, targeting the nearest H4 demand formed on approach.
Data points to consider: Eurozone PMI data hitting the wires between 8am/9am, as well as the EU court membership ruling at 9.30am.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1.08 region (dependent on the time of day, this is an area we would consider trading without confirmation, stop loss: 1.0825 aggressive stop, 1.0875 conservative stop).
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