Before we all get too excited though, the weekly chart shows that price resides within a major area of weekly supply chalked up at 1.1533-1.1278. This zone has held price lower since May 2015 so it is certainly not a barrier to be ignored.
So let’s just run through what we have here: Weekly is trading from supply and both the Daily and H4 are currently crossing paths with demand. In view of this, we feel a bounce could be seen from the H4 area highlighted within the blue circle (see above) today, but the most we’d expect from this move is H4 resistance 1.1447 due to what we’re seeing on the weekly picture (see above). In addition to this, we would highly recommend waiting for lower timeframe confirmation to form before risking capital here, as placing oneself on the wrong side of weekly flow is quite a risky play in our book. Finally, due to the mighty NFP taking the stage later on today, technicals might be sidelined during this time, so remain vigilant!
Levels to watch/live orders:
• Buys: 1.1368/1.1400 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
• Sells: Flat (Stop loss: N/A).