Daily Timeframe: A positive close above the 1.26837 level has recently been seen on the . This move has in our opinion confirmed buying strength from the daily demand area below at 1.24642-1.25616. With this is mind, we feel there is a good chance the market will eventually see further buying up to at least the daily supply area coming in at 1.29001-1.28453. However, before higher prices are seen, we have to be prepared for the possibility that price may retest the 1.26837 level as support.
Taking all the above into consideration, could the price action on the be giving us an early indication that the weekly demand swap area mentioned above at 1.26591-1.28010 will fail to hold the market lower? We feel it is very possible!
4hr Timeframe: While on the , things are looking good for higher prices to be seen, the 4hr timeframe on the other hand is currently showing price trading just within a fresh 4hr supply area at 1.27636-1.27268. We feel the market will trade lower from here, possibly faking out below the 1.27 level into active buy orders that are likely located just above the 4hr decision-point area (1.26509-1.26766) at 1.26817. We fully expect a nice reaction from here due to the fact that price would then also be trading around the daily level (support) mentioned above at 1.26837.
However, before a move is seen from the current 4hr supply area, we have to be prepared for a possible fakeout above towards a small 4hr decision-point area coming in at 1.27894-1.27731. This would likely provide well-funded traders the liquidity (sell orders for their buy orders) to push prices south.
• Buy orders: 1.26817 (Predicative stop-loss orders seen at: 1.26485).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).