Daily view: From the pits of the daily scale, we can see that price has begun to consolidate (mid-range at the time of writing) between 0.7798-0.7937 (a large daily swap zone that surrounds the aforementioned weekly swap level), and 0.7551-0.7624 (a daily demand area that is located within the aforementioned weekly ).
4hr view: For those who read our previous report on this pair, you may recall that we still had 30% of our remaining position running in the market from the short we took back up at 0.7842 on Thursday. As you can see, price hit the final take-profit target yesterday – the 4hr Bat reversal zone seen in green at 0.7678-0.7654, which yielded a very nice return all in all.
We also mentioned to keep an eye out for longs at this 4hr support. We personally did not buy here, but for anyone that did, great work! By now, if you’re following S. Carney’s trade management rules, your stop should be at breakeven as price has hit the 0.382% value of the A-D swing – some traders may choose to take partial profits here. The final take-profit target is seen at the 4hr supply area at 0.7795-0.7774, which lines up lovely with the 0.618% retracement value of the A-D swing, and as far as we can see is a nice area to be looking for confirmed shorts today should price reach thus high.
We’re also going to be keeping a close eye on 0.7700 for potential buying opportunities. Like above, waiting for lower timeframe buying confirmation here is highly recommended since round numbers are prone to fakeouts.
Levels to watch/ live orders:
• Buys: 0.7700 (Stop loss: dependent on where one confirms this level).
• Sells: 0.7795-0.7774 (Stop loss: 0.7805).