107.77-108.21 spots fantastic confluence for longs...
Weekly gain/loss: - 250 pips
Weekly closing price: 108.56
Following two weeks of struggle within the weekly support area seen at 111.44-110.10, the bears recently took control and forced price below this zone. The move could, in our humble opinion, force the piece to cross swords with the weekly support area coming in at 105.19-107.54.
Turning our attention to the daily chart, demand at 108.55-109.17 appears to be under pressure at the moment. In the event of this area giving way, the next downside target is seen at 107.15-107.90: a support area that’s glued to the top edge of the noted weekly support zone.
Despite the majority of the market enjoying some vacation time on Friday, both the 1.09 handle and Thursday’s low at 108.72 was taken out. This has, in our estimation, done two things. Firstly, the path south is relatively clear down to H4 demand at 107.77-108.21. Secondly, a potential H4 AB=CD pattern is forming, taken from the high 109.86. Also of interest here is the fact that the AB=CD (black arrows) 161.8% Fib ext. at 108.01, as well as the 108 handle, sits within the walls of the said H4 demand.
Our suggestions: The aforementioned H4 demand is certainly a place we’ll be considering longs from. Not only because of its H4 confluence, but also due to it being bolstered by the daily support area mentioned above at 107.15-107.90.
Of course, be prepared for the possibility that price may not strike this area today given that the majority of banks remain closed in observance of Easter Monday.
Data points to consider: BoJ Gov. Kuroda speaks at 7.15am GMT+1.
Levels to watch/live orders:
• Buys: H4 demand 107.77-108.21 (dependent on the time of day, a long from here at market is an option, stop loss: beyond the zone at 107.75).
• Sells: Flat (stop loss: N/A).
Weekly closing price: 108.56
Following two weeks of struggle within the weekly support area seen at 111.44-110.10, the bears recently took control and forced price below this zone. The move could, in our humble opinion, force the piece to cross swords with the weekly support area coming in at 105.19-107.54.
Turning our attention to the daily chart, demand at 108.55-109.17 appears to be under pressure at the moment. In the event of this area giving way, the next downside target is seen at 107.15-107.90: a support area that’s glued to the top edge of the noted weekly support zone.
Despite the majority of the market enjoying some vacation time on Friday, both the 1.09 handle and Thursday’s low at 108.72 was taken out. This has, in our estimation, done two things. Firstly, the path south is relatively clear down to H4 demand at 107.77-108.21. Secondly, a potential H4 AB=CD pattern is forming, taken from the high 109.86. Also of interest here is the fact that the AB=CD (black arrows) 161.8% Fib ext. at 108.01, as well as the 108 handle, sits within the walls of the said H4 demand.
Our suggestions: The aforementioned H4 demand is certainly a place we’ll be considering longs from. Not only because of its H4 confluence, but also due to it being bolstered by the daily support area mentioned above at 107.15-107.90.
Of course, be prepared for the possibility that price may not strike this area today given that the majority of banks remain closed in observance of Easter Monday.
Data points to consider: BoJ Gov. Kuroda speaks at 7.15am GMT+1.
Levels to watch/live orders:
• Buys: H4 demand 107.77-108.21 (dependent on the time of day, a long from here at market is an option, stop loss: beyond the zone at 107.75).
• Sells: Flat (stop loss: N/A).
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