Daily Timeframe: The shows that price is currently trading within a daily decision-point demand area seen at 0.78468-0.78986. This area is very important in our opinion, so much so, that if price breaks below this area, the path south is very likely clear for the sellers to test a daily demand area coming in at 0.77507-0.77772, which is conveniently located very deep within the weekly demand area mentioned above at 0.76931-0.78623.
However, assuming that we get favorable price action on the 4hr timeframe, this would be a perfect area to go long from targeting the daily Quasimodo at 0.80351. Let’s take a look!
4hr Timeframe: The round-number 0.79 level has been broken with a beautiful full-bodied candle. The market is currently seen resting on a 4hr coming in at 0.78882 (marked in pink). Risk/reward considerations argue against entering long here with price trading so near to potential resistance at 0.79. For us to be interested in buying this market, a close above the 0.79 level would need to be seen, we would then try to enter on the retest of this level as support, with first targets being set at the 4hr supply area above at 0.79409-0.79204.
A more promising area to enter long in our opinion would be at the 4hr demand area seen below at 0.78468-0.78595 (active buy orders are seen just above at 0.78616), as this area is fresh, and is also located deep within the aforementioned daily decision-point demand area.
• Buy orders: 0.78616 (Predicative stop-loss orders seen at: 0.78444).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).