Daily Timeframe: The current situation on the shows that price has been, and still is consolidating between a daily supply area at 1.26386-1.25459 (surrounds the aforementioned weekly support swap level), and a long-term daily demand area coming in at 1.22877-1.23809 (located relatively deep within the aforementioned combined weekly demand/Quasimodo ). Let’s take a look on the 4hr timeframe to see what we can find.
4hr Timeframe: For anyone who has not read our previous reports on this pair, here is a quick ‘heads up’. 50% of our team are currently looking to the short side due to the Euro being in a long-term downtrend. The remaining 50% are favoring longs since price is currently located around higher-timeframe demand (see above) at the moment.
Price did exactly as expected; a beautiful reaction was seen around the 4hr demand swap area at 1.24422-1.24588. There was indeed lower-timeframe confirmation in which to enter south here, if anyone had trouble seeing this, please do let us know, and we will happily show you. The selling pressure forced prices down to around 1.24, and as expected a rally higher ensued. However, price action was aggressive here, and unfortunately did not allow us a confirmed entry on the 15/5 minute timeframes.
A break above the aforementioned 4hr demand swap area shortly followed. As a consequence, this will likely attract further buying up to a 4hr coming in at 1.25, that conveniently lines up nicely with the channel resistance (upper/lower limits: 1.28859/1.26043). Once price enters the red circle, we intend to watch price like a hawk for lower-timeframe confirmation to short around 1.24956 area.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.24956 (Predicative stop-loss orders seen at: Dependent on how one chooses to confirm this level).