Now, this recent downside move has potentially opened the gates to a short trade today. Should we see price successfully retest the 1.0973/1.1000 area, together with a lower timeframe confirming signal, we would have no hesitation in placing a sell order in this market, targeting psychological support 1.0900.
In support of this trade, the weekly chart shows room for prices to continue lower down to range demand coming in at 1.0519-1.0798, along with the also showing room to move down towards demand drawn from 1.0846-1.0903 (converges with an pattern seen within at 1.0875). In fact, 1.0900, our take-profit target, lines up perfectly with the top-side of this daily demand area!
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.0973/1.1000 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).