Over on the bigger picture, this translates to a push higher within the walls of a weekly supply seen at 0.7897-0.7813. A clean break beyond this area might indicate higher prices up to as far north as the weekly resistance line at 0.8065. Also worth observing is the daily seen positioned within the upper limits of the said weekly supply at 0.7897-0.7870. The next upside target beyond this daily zone can be seen at 0.7986-0.7951: a daily .
0.79 is a key level in this market. It will, in our technical opinion, play a role in deciding the market’s next move.
A rejection of this number may help rescue struggling sellers within the higher-timeframe resistances mentioned above, and force another retest of H4 support at 0.7896. A violation of 0.79, on the other hand, could see a push up to H4 resistance at 0.7941, followed closely by a H4 broken Quasimodo line at 0.7956 (not seen on the screen), and consequently take stops above the higher-timeframe areas.
Also note that the aforementioned H4 resistances converge beautifully around the underside of the said daily resistance area! Breakout buyers of 0.79 might want to take this into account as it could be problematic.
Data points to consider: US CPI m/m figures and US retail sales numbers m/m at 1.30pm GMT .
Areas worthy of attention:
Resistances: 0.7897-0.7813; 0.8065; 0.7897-0.7870; 0.7986-0.7951; 0.79 handle.