With H4 price looking as though it wants to push lower, let’s take a peek at what the higher timeframes are up to. Looking over to the , yesterday’s selling managed to form a daily candle from within daily supply at 0.7517-0.7451. Meanwhile, up on the weekly chart, the commodity currency is now seen trading back within weekly supply at 0.7438-0.7315.
Our suggestions: Given the above points, this pair is likely to continue lower in our opinion. With that being said, we’re looking at 0.7477 (a small H4 resistance – see green arrows) for a possible short entry with our stop above the neighboring H4 supply at 0.7517. The rationale behind this approach comes from assuming that the break through the H4 low has confirmed H4 direction, so if price were to retrace from here, a sell from 0.7477 is very high probability. All of this coupled with the higher timeframes indicating lower prices could be on the horizon certainly makes this a pair worth watching today!