Pushing forward, here is how we see this market right now:
• Weekly price is bouncing from weekly demand at 0.7108-0.7186, and has the potential to rally back up to retest weekly supply drawn from 0.7438-0.7315.
• Daily action is now seen kissing the underside of a small daily supply area at 0.7259-0.7226.
• The H4 chart shows an formed on approach to the above said H4 resistance line. Additional confluence is seen from a converging upper H4 channel resistance taken from the high 0.7402.
Our suggestions: Given the confluence seen on the H4 chart, along with daily supply (see above), we feel a short from the 0.7241 is something to consider today. However, owing to the weekly picture showing demand currently in play (see above) there’s still a risk that, despite the H4 confluence, price could continue to rally higher. Therefore, we would highly recommend only taking a short trade around 0.7241 if you see strength forming on the lower timeframes. For us this would be either a demand engulf and subsequent retest, a break/retest or a collection of selling wicks around either the higher-timeframe level itself or a minor lower-timeframe resistance.