Over on the , we can see that the major recently found support at 1.0850. Should the bulls continue to defend this line, the next area of resistance can be seen at 1.0971. Up on the , the open forced price above resistance at 1.0819 and the 2016 yearly opening level at 1.0873, but is now seen trading back below the monthly level. We think the best thing to do on this timeframe is simply wait until the weekly candle closes before presuming that either resistance has been consumed.
Our suggestions: On the H4 chart, levels of interest this morning are as follows:
• The 1.08 handle, owing to it converging closely with February’s opening level at 1.0801 and a 50.0% retracement.
• The H4 support at 1.0773. Not only does this barrier converge with a 61.8% Fib retracement level at 1.0772, it also fuses with daily support coming in at 1.0772.
To be on the safe side here, we would strongly advise waiting for additional confirmation before attempting to enter long from either of the said levels. Ultimately, a nice-looking H4 bull candle (preferably a full-bodied close) would be ideal here!
Data points to consider: US CB consumer confidence, along with new home sales at 3pm GMT+1.