Potential shorts in this market
Early trade on Tuesday witnessed a strong round of selling take place, as traders favored the safe-have yen on escalating tensions between the US and China. As is shown on the H4 chart, the downside move breached the 110 handle and clocked fresh lows of 109.55 as we entered European hours. On the back of a recovery in US equities, said lows remained supportive and forced the H4 candles to reclaim 110 into the close.
The H4 resistance seen directly above the 110 handle at 110.08, which also happens to be bolstered by a 38.2% H4 Fib resistance value at 110.07, is, so far, doing a superb job in holding back breakout buyers above 110. Also
Weekly price action is seen trading lower from just ahead of a trend line resistance taken from the high 123.67, and daily movement is currently selling off from a daily resistance zone seen at 111.71-110.78. This is an area that not only fuses with the aforementioned weekly trend line resistance, it also converges with a 61.8% daily Fib resistance value at 110.91 (green line) and has reasonably significant history dating back to August 2017. The next support target on the daily scale, as far as we can see, is the June 8 low drawn from 109.19. This is then followed by weekly support at 108.13.
Areas of consideration:
Owing to a somewhat bearish vibe in the market this morning, shorts could still be the order of the day despite the push above 110!
Should H4 price CLOSE in the shape of a bearish pin-bar formation off the 110.08 H4 resistance level, shorting this market could be an option. The first take-profit level can be found around yesterday’s low: 109.55, followed then by May’s opening barrier at 109.27 and February’s opening level at 109.19 (essentially representing the June 8 low at 109.19 on the daily timeframe).
Today’s data points: US current account; US existing home sales; Fed Chair Powell and BoJ Gov. Kuroda speak.
The H4 resistance seen directly above the 110 handle at 110.08, which also happens to be bolstered by a 38.2% H4 Fib resistance value at 110.07, is, so far, doing a superb job in holding back breakout buyers above 110. Also
Weekly price action is seen trading lower from just ahead of a trend line resistance taken from the high 123.67, and daily movement is currently selling off from a daily resistance zone seen at 111.71-110.78. This is an area that not only fuses with the aforementioned weekly trend line resistance, it also converges with a 61.8% daily Fib resistance value at 110.91 (green line) and has reasonably significant history dating back to August 2017. The next support target on the daily scale, as far as we can see, is the June 8 low drawn from 109.19. This is then followed by weekly support at 108.13.
Areas of consideration:
Owing to a somewhat bearish vibe in the market this morning, shorts could still be the order of the day despite the push above 110!
Should H4 price CLOSE in the shape of a bearish pin-bar formation off the 110.08 H4 resistance level, shorting this market could be an option. The first take-profit level can be found around yesterday’s low: 109.55, followed then by May’s opening barrier at 109.27 and February’s opening level at 109.19 (essentially representing the June 8 low at 109.19 on the daily timeframe).
Today’s data points: US current account; US existing home sales; Fed Chair Powell and BoJ Gov. Kuroda speak.
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