Daily Timeframe: The on the other hand shows that ever since the 06/11/2014, price has been ranging between smaller daily zones (1.26386-1.25459/1.22877-1.23809) within the aforementioned larger weekly areas. A breakout above would likely confirm buying strength from the aforementioned weekly demand/Quasimodo , and in the same way, a breakout below would likely inform us that this weekly area is vulnerable, and strength is being seen from the aforementioned weekly support swap level.
4hr Timeframe: The EUR/USD saw a small sell off immediately around the open (1.24630), but found the 1.24180 level to be supportive enough to turn things around and allow the buyers back into the market. From here a rally higher ensued up to 1.25 that consequently forced price to close above the 4hr channel resistance, where at the time of writing selling interest is currently being seen.
Could this move be a subtle sign that the market wants higher prices? We believe this could be possible as long as the 1.24422 4hr support swap level holds. That being the case, we are going to set an alert around 1.24477 to begin watching for lower-timeframe buying confirmation, for the simple reason that this could effectively provide a high risk/reward trade long.
Setting pending orders on this pair without confirmation is something we’re not prepared to do when we are seeing no higher-timeframe direction (see above – the Euro is ranging).
• Buy orders: 1.24477 (Predicative stop-loss orders seen at: 1.24153).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).