Despite this, weekly price remains reinforced by support pegged at 1.1714. Daily flow on the other hand, shows room to continue pressing down to at least demand printed at 1.1612-1.1684.
Across the pond on the H4 timeframe, the mid-level support 1.1750 suffered a breach amid the early hours of US trading, but managed to recover relatively quickly. As can be seen from the chart, the unit concluded the day closing just ahead of resistance at 1.1779/October’s opening level at 1.1788 (green zone).
Suggestions: Given the room seen for daily price to probe lower, the green zone marked on the H4 timeframe is, in our view, worthy of consideration for potential shorts, targeting 1.1750/1.17. However, since the 1.18 handle is lurking directly above this zone, this will likely act as a magnet to price and cause a fakeout. For that reason, waiting for additional confirmation here is advised before pulling the trigger!
Data points to consider: ECB President Draghi speaks at 9.10am; FOMC members Dudley and Kaplan speak at 1pm; US Housing figures at 1.30pm GMT+1.