Weekly Timeframe: Buying interest is currently being seen off of a weekly Quasimodo support level at 0.85769. This comes after price had closed below a major weekly demand area at 0.86591-0.88247 last week. If follow-through buying is seen, prices could potentially test 0.88874, a weekly support flip level. Let’s see what we can find on the lower timeframes.
Daily Timeframe: The daily timeframe shows that price has tested the extremes of the daily decision-point supply area coming in at 0.87608-0.86798. A small break above of about three pips was seen. Is this enough to conclude that this area is consumed? We honestly do not think so; hopefully the 4hr timeframe will offer us a little more information.
4hr Timeframe: The 4hr timeframe shows that price has once again pushed above a 4hr supply zone seen at 0.87536-0.87319, could this be simply another fakeout, or is it consumption for higher prices? If price has indeed broke higher to consume sellers to continue north, price in our view should respect either 0.87 (tentative buy orders are seen just above at 0.87021), or 0.86820 (tentative buy orders are seen just above at 0.86865). A close below here would likely invalidate a bullish bias for the time being. Assuming that price respects either of the above levels, a reasonable first take-profit target is coming in around the 0.88 round-number area.
Buy/sell levels:
• Buy orders: 0.87021 (Predicative stop-loss orders seen at: 0.86659) 0.86865 (Predicative stop-loss orders seen at: 0.86659).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: The daily timeframe shows that price has tested the extremes of the daily decision-point supply area coming in at 0.87608-0.86798. A small break above of about three pips was seen. Is this enough to conclude that this area is consumed? We honestly do not think so; hopefully the 4hr timeframe will offer us a little more information.
4hr Timeframe: The 4hr timeframe shows that price has once again pushed above a 4hr supply zone seen at 0.87536-0.87319, could this be simply another fakeout, or is it consumption for higher prices? If price has indeed broke higher to consume sellers to continue north, price in our view should respect either 0.87 (tentative buy orders are seen just above at 0.87021), or 0.86820 (tentative buy orders are seen just above at 0.86865). A close below here would likely invalidate a bullish bias for the time being. Assuming that price respects either of the above levels, a reasonable first take-profit target is coming in around the 0.88 round-number area.
Buy/sell levels:
• Buy orders: 0.87021 (Predicative stop-loss orders seen at: 0.86659) 0.86865 (Predicative stop-loss orders seen at: 0.86659).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
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