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 ). A break above this daily range will very likely confirm buying strength from the aforementioned weekly demand/Quasimodo .
4hr Timeframe: The EUR/USD pair as you can see is currently trading around significant resistance - the psychological level 1.25, the 4hr supply area at 1.25671-1.25336 (located just within the daily supply area at 1.26386-1.25459) , and also the resistance (upper/lower limits: 1.28859/1.26043). This all sounds very good, but let’s not forget that price is trading out of a major combined weekly demand/Quasimodo (see above) at present, which in our opinion takes precedence over the aforementioned 4hr resistance cluster for the time being.
At the time of writing, we are currently watching the lower-timeframe price action within the red circle for any short-term selling opportunities that may arise, but at the same time, we are also looking for price to show buying strength, since most of our team are now favoring longs.
As of now, we see no signs that sellers have entered the market. In fact, the buyers seem to be in control for the minute, due to price successfully holding above 1.25. If a signal long comes our way around this level, we will have no hesitation in taking it. In our opinion targets for a long trade would be around the following areas: 4hr supply: 1.25671-1.25336, 4hr Quasimodo at 1.25765 and also a 4hr supply area coming in at 1.26310-1.26000. However, do bear in mind price could potentially rally much higher than the aforementioned target areas, this is why we recommended watching the lower timeframe price action to tell you when price is not likely going to continue higher, as the thing you would want to do is enter long, close your position at a near-term target, and then see price rocket north which could potentially happen here. It will be interesting to see what today’s trading brings.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).