Daily Timeframe: The daily demand area seen at 1.22877-1.23809 has seen a positive close lower, as traders sold the Euro and bought U.S Dollars due to positive NFP numbers. Breaking this area has potentially opened the gates for prices to challenge a daily demand area seen below at 1.21326-1.22234. If prices do indeed decline this far, a break of the aforementioned major weekly Quasimodo would be seen, indicating a fakeout may be on the cards, if of course this daily demand area holds and follow-through buying is seen.
4hr Timeframe: The 4hr timeframe shows that the market closed the week (1.22849) just above a 4hr demand area coming in at 1.22547-1.22832. Risk/reward considerations argue against entering a buy order here with price so very close to 1.23. We’d rather wait for price to close above 1.23 and retest this level before putting our money on the line. The above could well happen today or even tomorrow since let’s not forget; we are currently trading within a weekly Quasimodo (levels above) at the moment. The only grumble we have is that the daily demand area at 1.22877-1.23809 appears to have failed indicating possible weakness within this market.
With that in mind, we have to be prepared for further selling to be seen. A break below current demand could force the market down to a nice-looking 4hr Quasimodo at 1.22168 (located within the daily demand at 1.21326-1.22234, but just below the aforementioned weekly Quasimodo ), which also has a buffer support seen below it at 1.22. Therefore, this is definitely an area that’s firmly on our radar for this coming week.
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).