Buying above 0.80 could face selling around 0.8030/10
Coming at you from the top this morning, weekly action is seen trading within shouting distance of a weekly resistance level plotted at 0.8065.This is a well-established level, going back as far as early 2010. Turning our attention to the daily candles, nevertheless, price remains sandwiched between a daily Quasimodo resistance at 0.8035 and a daily support area at 0.7986-0.7951.
Over on the H4 timeframe, we can see that the large psychological level 0.80 remains in the limelight. Stop-loss orders have likely been well and truly mutilated above this number in recent days, so we don’t believe there is a whole lot of selling interest around this neighborhood for the time being.
Market direction:
While 0.80 may be weak, directly above we see a lot of wood to chop through between 0.8030/10 (circled in green). This, we believe, was caused by daily sellers from the aforementioned daily Quasimodo resistance level. Therefore, breakout buyers above 0.80 may want to prepare themselves for a bit of drawdown!
In view of how tight structure is in this market right now, opting to stand on the sidelines might be the better path to take today.
Data points to consider: US existing home sales at 3pm GMT.
Over on the H4 timeframe, we can see that the large psychological level 0.80 remains in the limelight. Stop-loss orders have likely been well and truly mutilated above this number in recent days, so we don’t believe there is a whole lot of selling interest around this neighborhood for the time being.
Market direction:
While 0.80 may be weak, directly above we see a lot of wood to chop through between 0.8030/10 (circled in green). This, we believe, was caused by daily sellers from the aforementioned daily Quasimodo resistance level. Therefore, breakout buyers above 0.80 may want to prepare themselves for a bit of drawdown!
In view of how tight structure is in this market right now, opting to stand on the sidelines might be the better path to take today.
Data points to consider: US existing home sales at 3pm GMT.
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