For those who read Wednesday’s report you may recall that our desk placed a pending sell order around the lower edge of a fresh H4 supply at 1.1484. As can be seen from the H4 chart, the order filled beautifully during the early hours of yesterday’s segment and has reached the first take-profit zone: July’s opening level at 1.1417. We have taken 50% off the table here and reduced risk to breakeven.
Ultimately, we do believe the unit will continue to push lower going forward, since weekly price remains loitering within the walls of a major weekly supply drawn from 1.1533-1.1278 (that has capped upside since May 2015). Alongside this, we can also see daily action showing room to trade down to at least the support area coming in at 1.1327-1.1253.
Our suggestions: With the above notes in mind, our final take-profit level has been set at the H4 Quasimodo support pegged from 1.1336, just nine pips above the top edge of the aforementioned daily support area.
Other than our current trade, we do not see much else to hang our hat on right now. Trying to join the sellers at current price would be challenging given that we have a H4 support area at 1.1372-1.1390 lurking nearby!
Data points to consider: US PPI figures and US Weekly unemployment claims at 1.30pm, Fed Chair Yellen testifies at 3pm, FOMC member Evans speaks at 4.30pm, FOMC member Brainard speaks at 6pm GMT+1.
Ultimately, we do believe the unit will continue to push lower going forward, since weekly price remains loitering within the walls of a major weekly supply drawn from 1.1533-1.1278 (that has capped upside since May 2015). Alongside this, we can also see daily action showing room to trade down to at least the support area coming in at 1.1327-1.1253.
Our suggestions: With the above notes in mind, our final take-profit level has been set at the H4 Quasimodo support pegged from 1.1336, just nine pips above the top edge of the aforementioned daily support area.
Other than our current trade, we do not see much else to hang our hat on right now. Trying to join the sellers at current price would be challenging given that we have a H4 support area at 1.1372-1.1390 lurking nearby!
Data points to consider: US PPI figures and US Weekly unemployment claims at 1.30pm, Fed Chair Yellen testifies at 3pm, FOMC member Evans speaks at 4.30pm, FOMC member Brainard speaks at 6pm GMT+1.
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