A breakout either above or below this 4hr range, however, would be very interesting. Above shows room for price to rally towards 0.7418/0.7436 – a sell zone of ours chalked up a few days ago. A break below this range, nonetheless, potentially opens up the path towards the 4hr Quasimodo at 0.7282. Since there is more space below this range than above, one could look to trade the retest following a break lower and target 0.7282 as a first take-profit level…
In spite of the above, when we include the higher timeframes into the mix the picture looks a little different. The downtrend on the is strong to say the least. Furthermore, price is trading relatively near to both a daily at 0.7418, and a weekly swap (supply) area at 0.7449-0.7678. For this reason, our team is still in favor of shorts.
Levels to keep an eye on are as follows (lower timeframe confirmation required):
1. 0.7388 – the top-side of the 4hr range discussed above.
2. 0.7418/0.7436 – a daily which converges nicely with a 4hr downtrend line taken from the high 0.7494.
3. And finally, one could watch for a break below the 4hr range low 0.7322, and look to enter on a retest of this number.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 0.7388 Tentative – confirmation required (Stop loss: dependent on where one confirms this level) 0.7418/0.7436 Tentative – confirmation required (Stop loss: dependent on where one finds confirmation within this area) Watch for bids at 0.7322 to be consumed and then look to enter on a retest of this number (confirmation required).