Despite the strong bullish moves of the kiwi in the European session we saw it ceding ground and reversing back from the 38.2% Fibonacci level drawn from last week’s Hi-Lo in the 4HR chart. It also meant that the gap down in which the market opened with was satisfactorily filled and the inability of price to trend higher was shown by those inverted hammers and bear candles in the weekly 50% Fibonacci level. The intended sell zone also retained it ground.
We shall look to sell at all highs in the 15 Min chart today and this is rightly so if we look at how the candle sequence is behaving in relation to the upper BB-there are a series of lower lows and higher lows with net volume dropping-check the OBV.
Fundamentally, lets watch the weekly unemployment claims projected at 267K from last week’s 259K at 1230 GMT+3 and then later FOMC member Bullard speaks-he might give us an hint on what the fed might do in the coming meeting and also his stance as a dove.
Otherwise our game plan remains as follows in the 15 minute chart:
Sell Limit-at the sell zone at 0.712(gap filled)
TP-0.705(100% Fibonacci Level from yesterday’s Hi-Lo with trailing stop of your discretion)
Have a good trading day.