Daily Timeframe: The however is telling a different story. Monday’s trading sessions saw a close below the 0.88874 level, which has potentially cleared the path south down to a daily Quasimodo seen at 0.87556 (located relatively deep within weekly demand at 0.86591-0.88247). With that being said, we cannot be sure this is a continuation break until price successfully retests the 0.88874 level (as resistance), since it could very well just be a deep fakeout to accumulate liquidity for a push higher. Only time will tell.
4hr Timeframe: Yesterday’s trading sessions saw price aggressively close below the 0.89 level. This move potentially cleared the way down to a very obvious 4hr support flip level at 0.88223 (where we will be watching for price action confirmation to buy). That being said though, we cannot ignore the fact that price may retrace here and retest the 0.89 level as resistance before continuing south.
The reason we did not consider setting a pending buy order above the 4hr support flip level (0.88223) was simply because the is suggesting prices could move lower past the weekly Quasimodo (0.88189) deeper into weekly demand (0.86591-0.88247), so being patient is probably the way we have to go.
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: 0.88262 (Stop loss: Dependent on price action after the level has been confirmed, Take profit levels(s): Dependent on approaching price action after the level has been confirmed).
• 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.