Sweeping over to the , we can see that recent selling has brought the unit deep into demand planted at 1.1662-1.1814. Meanwhile, down on the price concluded yesterday’s segment marginally breaching demand pegged at 1.1739-1.1823. By and of itself, this move has likely filled a truckload of stop-loss orders and potentially cleared the pathway south down to another demand penciled in at 1.1612-1.1684.
Suggestions: In view of the above notes, we have our eye on the H4 Quasimodo mentioned above at 1.1681 for longs today. Here’s why:
• Stop-loss orders below the 1.17 handle will help provide liquidity for bigger traders to buy.
• The H4 Quasimodo aligns beautifully with the top edge of oncoming daily demand at 1.1684.
• The H4 level is also seen lurking within the lower limits of the aforesaid weekly demand.
The desk has a placed a pending buy order at 1.1681 with a stop positioned below the lower edge of the said weekly demand at 1.1660.
Data points to consider: German Prelim CPI m/m; Spanish Flash CPI y/y at 8am. US GDP q/q and US Unemployment claims at 1.30pm, followed by FOMC member Fischer speaking at 3.15pm GMT+1.