Daily Timeframe: In the previous analysis, it was mentioned that price was confined to trading between a small daily resistance flip level seen at 1.27500, and a relatively small daily supply area coming in at 1.29001-1.28453 (located just within the aforementioned weekly supply area). New updates show that price has now closed below the 1.27500 level, and as a result cleared the path south down towards at least a small daily decision-point level seen at 1.26545.
4hr Timeframe: The 4hr timeframe shows that price is currently trading very close to the 1.27 level (tentative buy orders are seen just above at 1.27042). However, considering where price is currently located on the higher-timeframe picture (see above), we would not be comfortable buying here, as risk/reward considerations argue against entering long with prices so close to the 1.27500 daily (marked in pink).
With that being said, assuming a bounce is seen off of the 1.27 level, we then feel there is a good chance price will sell aggressively off of the aforementioned daily (active sell orders are seen just below at 1.27431) that could potentially consume any traders attempting to fade the 1.27 level. In our opinion, a nice-looking target for this short trade would be the 4hr demand area seen at 1.26236-1.26469, which is located just below a daily decision-point level coming in at 1.26545.
• Buy orders: 1.27042 (Predicative stop-loss orders seen at: 1.26689).
• Sell orders: 1.27431 (Predicative stop-loss orders seen at: 1.27639).