On the whole, the H4 candles are, to a certain degree, sandwiched between a H4 at 0.7948-0.7926 and the 0.80 band. The other key thing to note is that there’s a daily supply also currently in motion at 0.7986-0.7951. A topside breach of 0.80 would, as far as we can see, place weekly resistance at 0.8065 on the hit list. A break of the current H4 , on the other hand, has the 0.79 handle (H4 timeframe) to immediately contend with, followed closely by a daily penciled in at 0.7897-0.7870.
Given the structure highlighted above, we believe this to be a rather restricted market at present. With that being the case, we feel that opting to stand on the sidelines may be the better path to take for now.
Data points to consider: Chinese GDP, Fixed asset investment ytd/y, Industrial production y/y and NBS press conference at 7am; US housing data, Philly Fed manufacturing index and weekly unemployment claims at 1.30pm GMT .
Areas worthy of attention:
Supports: 0.7948-0.7926; 0.7897-0.7870.
Resistances: 0.80 handle; 0.8065; 0.7986-0.7951.