Shorts beneath 1.35, anyone???
Employing a top-down approach this morning, the research team notes weekly price is currently crossing paths with the upper limits of supply at 1.3540-1.3387. In support of this area, daily movement came within three pips of testing resistance priced in at 1.3533. Combined, the two are likely to provide a ceiling.
Lower down on the curve, the H4 candles reclaimed 1.35+ status amid early US trade Thursday, allowing a test of the nearby channel resistance (etched from the high 1.3132). Note the candles rebounded from this ascending line and brought price to 1.35 into the close. It might also be worth noting the RSI indicator is seen displaying a divergence reading at the moment.
Areas of consideration:
Having seen both weekly and daily structure offer resistance this morning, and the H4 candles recently engage with a channel resistance, a selloff could be on the cards today. To prove seller intent, the research team urges traders to consider waiting for a H4 close to print under 1.35. That way, price is reasonably clear towards H4 support at 1.3445, followed closely by the round number 1.34.
Aggressive traders may opt to simply sell the breakout beneath 1.35 and position stop-loss orders above the rejection candle’s wick. Conservative traders, on the other hand, might feel a retest to the underside of 1.35 in the shape of a bearish candlestick formation is necessary before pulling the trigger (entry/stop parameters can be defined according to this pattern).
Today’s data points: US Core Durable Goods Orders m/m; US Final GDP q/q; US Durable Goods Orders m/m; US Core PCE Price Index m/m; US Personal Spending m/m; US Revised UoM Consumer Sentiment. Canadian Core Retail Sales m/m, GDP m/m and Retail Sales m/m; BoC Business Outlook Survey.
Lower down on the curve, the H4 candles reclaimed 1.35+ status amid early US trade Thursday, allowing a test of the nearby channel resistance (etched from the high 1.3132). Note the candles rebounded from this ascending line and brought price to 1.35 into the close. It might also be worth noting the RSI indicator is seen displaying a divergence reading at the moment.
Areas of consideration:
Having seen both weekly and daily structure offer resistance this morning, and the H4 candles recently engage with a channel resistance, a selloff could be on the cards today. To prove seller intent, the research team urges traders to consider waiting for a H4 close to print under 1.35. That way, price is reasonably clear towards H4 support at 1.3445, followed closely by the round number 1.34.
Aggressive traders may opt to simply sell the breakout beneath 1.35 and position stop-loss orders above the rejection candle’s wick. Conservative traders, on the other hand, might feel a retest to the underside of 1.35 in the shape of a bearish candlestick formation is necessary before pulling the trigger (entry/stop parameters can be defined according to this pattern).
Today’s data points: US Core Durable Goods Orders m/m; US Final GDP q/q; US Durable Goods Orders m/m; US Core PCE Price Index m/m; US Personal Spending m/m; US Revised UoM Consumer Sentiment. Canadian Core Retail Sales m/m, GDP m/m and Retail Sales m/m; BoC Business Outlook Survey.
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