Weekly Timeframe: Last week started off looking so positive with serious buying interest being seen out of a weekly demand area at 0.76931-0.78623. However, this was quickly brought to a halt when sellers came into the market around the 0.80328 weekly resistance level. At this point in time, we see very little on the weekly timeframe in terms of future direction until either one of the aforementioned areas gets broken. Let’s see what the lower timeframes have to say.
Daily Timeframe: The daily timeframe shows that around the weekly resistance level mentioned above, there is a picture-perfect Quasimodo resistance level coming in at 0.80351. This level repelled the market beautifully as was to be expected. If further selling is seen, which at the time of writing appears to be so, then there is very little in our opinion stopping price from reaching the daily decision-point demand area seen below at 0.78468-0.78986.
4hr Timeframe: The market opened around 10 points lower than Friday’s close (0.79228) at 0.79122, which as a consequence saw price trading into a 4hr support level seen at 0.79144. There were clearly some active buyers around this level; nevertheless, it appears to be not enough to overcome the sellers for the time being. As mentioned in the previous analysis, any traders that were thinking of going long around this 4hr support level would benefit from keeping in mind that price could very well fakeout below to the 0.79 level (located just above the daily decision-point demand area at 0.78468-0.78986).
In a like manner, any traders thinking of going long around the 0.79 level would do well to keep in mind the following: round-number levels such as these are prone to deep spikes, which in this case should almost be expected since there is a daily decision-point demand area sitting just below it, so we would advise waiting for lower-timeframe confirmation here, rather than risking a blind entry.
Buy/sell levels:
• Buy orders: 0.79024 (Predicative stop-loss orders seen at: 0.78923).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
Daily Timeframe: The daily timeframe shows that around the weekly resistance level mentioned above, there is a picture-perfect Quasimodo resistance level coming in at 0.80351. This level repelled the market beautifully as was to be expected. If further selling is seen, which at the time of writing appears to be so, then there is very little in our opinion stopping price from reaching the daily decision-point demand area seen below at 0.78468-0.78986.
4hr Timeframe: The market opened around 10 points lower than Friday’s close (0.79228) at 0.79122, which as a consequence saw price trading into a 4hr support level seen at 0.79144. There were clearly some active buyers around this level; nevertheless, it appears to be not enough to overcome the sellers for the time being. As mentioned in the previous analysis, any traders that were thinking of going long around this 4hr support level would benefit from keeping in mind that price could very well fakeout below to the 0.79 level (located just above the daily decision-point demand area at 0.78468-0.78986).
In a like manner, any traders thinking of going long around the 0.79 level would do well to keep in mind the following: round-number levels such as these are prone to deep spikes, which in this case should almost be expected since there is a daily decision-point demand area sitting just below it, so we would advise waiting for lower-timeframe confirmation here, rather than risking a blind entry.
Buy/sell levels:
• Buy orders: 0.79024 (Predicative stop-loss orders seen at: 0.78923).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.