1. The daily itself sits within a weekly supply area at 1.1533-1.1278.
2. On the a very clear bear pattern is in play right now. The sell zone (for us) can be seen between the 127.2% Fibonacci level at 1.1197 and the 161.8% at 1.1387 – the daily supply sits within the upper area of our sell zone making it a perfect barrier in which to short.
With regards to our first take-profit target we’re eyeing the psychological support 1.1200. Looking at the H4 chart we can all see that price has closed below the 1.1300 figure, and we’re hoping it stays this way as this provides a ceiling of resistance for our trade today. The 1.1200 level also marks the top side of daily demand base (not marked on the chart) at 1.1086-1.1195, so a reaction here is very likely.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1330 LIVE (Stop loss: 1.1395).