The move, however, was a short-lived one. After price surpassed the 0.78 handle and tested active bids around H4 demand at 0.7762-0.7779, the market reversed immediate losses and went on to conquer the 0.79 handle into the closing bell.
Although bolstered by the fact that the pair is seen trading from a 2018 yearly opening level on the at 0.7801, the commodity currency is seen trading within close proximity to a daily at 0.7986-0.7951.
Potential trading zones:
We really like the look of the 0.7969/0.7947 region on the H4 timeframe marked in green. Comprised of a H4 161.8% Fib ext. point at 0.7969, a H4 resistance taken from the low 0.8004, a H4 50.0% resistance at 0.7947, a H4 mid-level resistance at 0.7950 and the underside of the aforementioned daily , this barrier is a reasonably attractive sell zone, in our technical view. Therefore, do keep an eyeball on price action around this area today should it come into the spotlight.
Data points to consider: . jobs figures at 12.30am; US PPI m/m, Empire state manufacturing index, Philly Fed Manufacturing index and US weekly unemployment claims at 1.30pm; US industrial production m/m and capacity utilization rate at 2.15pm GMT .