Weekly Timeframe: The weekly timeframe shows that price is reacting off of a long-term downtrend channel support (0.97569/0.88468) seen deep within a major weekly demand area coming in at 0.80646-0.84601.
Daily Timeframe: It was reported in the previous analysis that we should be prepared for price to fake below the daily swap level at 0.82625 into a daily demand area coming in at 0.80809-0.82270, which played out yesterday. With both the weekly and daily timeframe showing the market in demand, we are naturally favoring buy trades at the moment. Let’s see what we can find on the 4hr timeframe.
4hr Timeframe: The 4hr timeframe clearly shows that there were active sell orders around the 4hr supply area seen at 0.83894-0.89676, which has forced the market to trade below 0.83. In the event that further selling is seen, it is likely that prices will test 0.82588, a 4hr Quasimodo support level (tentative buy orders are seen just above at 0.82624). We would not usually consider buying here with prices so close to resistance at 0.83, but with both the weekly and daily timeframes showing prices trading around demand (see above) at the moment, we feel it is worth the risk. However, we will not be blindly placing a buy limit order here; lower timeframe confirmation will be required.
Current buy/sell levels:
• Buy orders: 0.82624 [Tentative] (Predicative stop-loss orders seen at: Dependent on where one confirms the level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Comments
Ahmer
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Thanks for the Analysis.
I will wait until RBNZ and AUD Employment data to come out.
A break above 1.84000 key level is required for bulls to come and take charge.
Confluence-FX
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good analysis agree with it, I am long from 1.83000 and Target is 1.84000.
ICmarkets
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Hi AliNoorFx,
Great trade! Once or indeed if price trades higher, keep an eye on the 4hr supply area seen at 0.83894-0.89676 as price reacted very well from this area in the past.
I will wait until RBNZ and AUD Employment data to come out.
A break above 1.84000 key level is required for bulls to come and take charge.