Weekly closing price: 0.7622
After crossing paths with the underside of a weekly resistance taken from the high 0.7835, the bears pushed the commodity-linked currency lower last week. On the condition that this pair remains in the red, the next port of call can be seen at 0.7524-0.7446: a weekly .
Climbing down to the , we can see that the buyers and sellers ended the week forming an indecision candle. Be that as it may, there’s still room seen for further downside this week until we connect with the demand base coming in at 0.7540-0.7570 (positioned just ahead of the aforementioned weekly ).
Looking across to the H4 candles, a rather interesting area (painted in green) of support has recently caught our eye. It comprises of February’s opening level at 0.7577, a 61.8% Fib support at 0.7589 and the 0.76 handle. What is also notable from here is that the aforementioned daily demand sits only 7 pips below this zone! Therefore, one should prepare for the possibility of a fakeout here!
Our suggestions: While our team is interested in buying from the above noted H4 buy zone, we would prefer to enter long within the lower limits of its range. That way, we can place stops beyond the daily demand! Should price reach this point and print a reasonably sized H4 rotation candle, then our team would, if we’re not in on any other trades at the time, look to buy from here, targeting March’s opening level at 0.7642 as an initial take-profit target.
Data points to consider: RBA Assistant Gov . Debelle speaks today at 10pm. FOMC member Evans speaks at 5.15pm, as well as FOMC member Kaplan taking the stage at 10.30pm GMT .
Levels to watch/live orders:
• Buys: 0.7577/0.76 (waiting for a reasonably sized H4 candle to form before pressing the buy button is advised, stop loss: Ideally beyond the trigger candle).
• Sells: Flat (stop loss: N/A).