Interesting zone seen around 1.22/1.2250

1 thg 3, 2017

The pair, as you can see, sustained further losses during the course of yesterday’s sessions. After enduring and finally conquering the 1.23 handle in recent trade, the H4 mid-level support at 1.2250 is in firing range. What’s interesting here is the fact that this H4 level also fuses with a H4 AB=CD 127.2% Fib ext. at 1.2244 taken from the high 1.2706, and of course, the nearby 1.22 handle (yellow box). This – coupled with price also trading within the lower limits of a daily demand seen at 1.2252-1.2342, and also considering that 1.22 represents a weekly Quasimodo support, we believe the bulls may make an appearance from here today.

Our suggestions: Quite simply, watch for buyer intent to form within the above noted H4 yellow zone. We personally will want to see a reasonably sized H4 bull candle form, before pulling the trigger. Of course, this does not guarantee a winning trade, but what it will do is show buyer intent within a high-probability reversal zone.

Data points to consider: UK construction PMI at 9.30am. US Jobless claims at 1.30pm GMT.