Looking at the 4hr timeframe, the pair appears to be in the process of forming a tight 4hr (1.1212/1.1079) held together by two psychological limits, 1.1200 and 1.1100. Other than this though, it was a rather uneventful Friday.
Transferring into a new week, trade opened six pips higher this morning at 1.1113. In view of price currently trading at both round-number support 1.1100 and also the lower limit of a 4hr formation (1.1079), where do we go from here?
Well, considering that the shows room to continue advancing north this week up to at least the lower boundary of the aforementioned weekly , we could look to enter long at the market’s current position. Be that as it may, price is presently showing resistance on the daily scale (see above) and also room to move south at the moment, so one certainly needs to tread carefully here. That being the case, here is what we have noted so far:
• Look for CONFIRMED long entries at the 1.1100 barrier today. Expect price to fake lower, however, down to 1.1082. Stop losses would be best placed five pips below this number for safety even with confirmation. Targets for this trade would be the upper limit of the 4hr , followed closely by 1.1200 and 1.1233 – a daily Quasimodo . Both 1.1200 and 1.1233 could make for very nice sell zones this week, so do keep these numbers on your watchlists.
• In the event that 1.1082 gives way, there may be a potential intraday short trade on the retest of this number down to 4hr demand at 1.1009-1.1039. Waiting for lower timeframe confirmation following the retest would be advised.
Levels to watch/live orders:
• Buys: 1.1100 (Stop loss: ideally five pips below 1.1082).
• Sells: Watch for 1.1082 to be consumed and then look to enter on a retest of this number (confirmation required) Note that 1.1200 and 1.1233 are potential sell levels.