Daily view: Supportive pressure came into the market during yesterday’s session around the upper limit of a daily demand area seen at 0.7551-0.7624 (located within the aforementioned weekly demand area). On the condition that this buying continues, we might, just might see prices challenge the small daily supply area at 0.7838-0.7802 (positioned just below a minor weekly swap level at 0.7845).
4hr view: For those who read our last report on this pair, you may recall that we were interested in entering into a buy position from the 4hr demand area at 0.7570-0.7603 (located within the aforementioned daily demand area) if lower timeframe confirmation was seen.
Our team found a beautiful entry on the 30 minute timeframe and was filled at 0.76230 around 8:10am GMT . Our first take-profit target (the 4hr swap area at 0.7665-0.7683) was hit with little trouble, with price continuing on north to marry up with 0.7700 which is currently repelling the market as we write. Ultimately, we would like to see the 4hr swap area at 0.7665-0.7683 hold as support now, and force price above 0.7700. Should this occur, we’d then believe our second and final take-profit target – the 4hr supply area at 0.7817-0.7775 (located within the aforementioned daily supply area) would likely be hit. Equally important, however, is that a break above 0.7700 potentially opens up the door to a second buying opportunity. If 0.7700 is retested as support and shows some form of lower timeframe confirming price action at this number, we’d happily take another long entry here and use the same take-profit target as what we have on our current long. Why we believe the path north is clear above 0.7700 up to the 4hr supply area at 0.7817-0.7775 simply comes from the two supply consumption wicks seen marked with black arrows at 0. 7725 and 0.7760.
Levels to watch/ live orders:
• Buys: 0.76230 (Predicative stop-loss orders seen at: Breakeven).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).