Daily Timeframe: Similar to the , the shows price hovering just above a daily demand area coming in at 1.1045-1.1127, which, if you look back to the weekly chart, you’ll notice that it surrounds the aforementioned weekly Quasimodo .
4hr Timeframe: Recent developments on the 4hr timeframe reveal that price is currently bouncing between the 1.1167 level, and the 1.1200 handle. Given that both the weekly and daily timeframes are showing near-term support coming in just below (see above), our team has decided to put sells on the back burner for the time being and focus our energy on looking for buy trades.
The buy zones currently on our watchlist at the moment are 1.1150, and 1.1109. Selecting the weekly Quasimodo at 1.1109 is, we hope, self-explanatory, but why 1.1150?
1. Located 20 pips or so above the aforementioned daily demand area.
2. Mid-level round number.
3. Weekly open level seen back on the 25/01/15.
Touch trading these levels would be too risky in our book, since a fakeout would likely stop us out. A more conservative approach would be to keep an eye on the lower timeframe price action, if we see a 15 minute timeframe supply area engulfed, for example, this would then be a signal to begin looking to touch trade near term demand.
Current buy/sell orders:
• Buy orders: 1.1150 (Predicative stop-loss orders seen at: dependent on where one confirms this level) 1.1109 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).