For those who read Thursday’s report you may recall our desk suggesting that the bears may have the upper hand in this market. As you can see, H4 price closed below the H4 support area at 1.0797-1.0780, and quickly retested it as a resistance. In view of the higher timeframes also challenging a weekly resistance level at 1.0819, we have entered short on the close of the previous H4 bear candle at 1.0783 and placed our stop above February’s opening level (1.0801) at 1.0807.
Our suggestions: With the closest the higher-timeframe support structure not coming into view until we reach the daily support area formed at 1.0714-1.0683, we feel our trade will reach the H4 demand at 1.0705-1.0723 which happens to be positioned around the top edge of the aforementioned daily support area.
Data points to consider: Eurozone PMI data at 8-9am. FOMC member Evans speaks at 12pm and US core durable goods orders comes in just after at 12.30pm GMT.