Daily Timeframe: The shows the recent buying off of the weekly Quasimodo more clearly (levels above). With that being said, this pair is at a point where a decision needs to be made. Price is currently trading around a daily (prior support) at 0.88874, assuming a close above this level is seen, and it successfully holds, we can be quite confident higher prices are likely to follow. On the other hand, if selling interest comes into the market here, this could very well mean the weekly Quasimodo will see a break south, which will consequently see prices trading within a strong-looking weekly demand area sitting just below at 0.86591-0.88247.
4hr Timeframe: On the 4hr timeframe, the recent downtrend is very obvious with the flurry of lower lows and lower highs. However, as already mentioned above, price is now trading around a weekly Quasimodo (levels above), and as such, higher prices may very well be seen. Be that as it may, in our opinion, a change in direction has yet to happen, since the 4hr decision-point area at 0.89486-0.89206 has not been consumed. This area of supply is extremely important; this is where the overall decision was likely made to break below a clear daily at 0.88874. Therefore if this area is consumed, we will very much be expecting higher prices up to at least the 0.9 level, which we will try to take full advantage of, if/when the time comes.
Pending orders/Price action confirmation levels:
• Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.