Pending buy order set above demand at 0.7805...

15 Ağu 2017

Kicking this morning’s report off with a look at the weekly timeframe, we can see that the candles recently came into contact with a support area marked at 0.7849-0.7752. There was, as noted in Monday’s report, a mild end-of-week correction seen from the top edge of this base. Looking down to the daily timeframe, the commodity currency is seen lurking just ahead of a demand at 0.7786-0.7838 (encases a daily broken Quasimodo level at 0.7819). The demand, as you can see, boasts a strong-looking base. This, alongside it being positioned within the current weekly support area, could see higher prices from here in the near future.

Recent activity on the H4 timeframe shows price failed to sustain gains beyond the 0.79 handle, and proceeded to fall sharply down to the mid-level support at 0.7850 (denotes the top edge of the aforesaid weekly support area). A violation of this line could lead to a move being seen down to the 0.78 handle, which is seen encased within a H4 demand area at 0.7786-0.7804.

Suggestions: With room being seen on the daily timeframe for price to stretch beyond the H4 mid-level support at 0.7850, we would not feel comfortable buying from this line. From our perspective, an ideal scenario would be for price to reach beyond 0.7850 today and cross swords with the aforementioned H4 demand area. As we believe this is a strong buy zone, our desk has set a pending buy order at 0.7805, with a stop-loss order tucked beneath at 0.7784.

Data points to consider: Australian Monetary policy meeting minutes at 2.30am. US Core retail sales figures at 1.30pm GMT+1.