perspective: A decision has clearly been made on the daily picture. The sellers strongly closed prices below a daily swap level visible at 1.0716 yesterday, which in turn has likely opened the gates for prices to challenge the daily demand area seen at 1.0461-1.0565 (reaction to the weekly demand area mentioned above).
4hr timeframe perspective: The recent descent on the Euro took out not only a small 4hr demand area at 1.0749-1.0772, but also the round number 1.0700 as well. The assault ended with prices colliding with another 4hr demand area at 1.0612-1.0658, which actually forms the first layer so to speak of a 4hr stacked demand formation.
Considering where the market is trading on the higher timeframes (see above) at present, it’s very hard for our team to be . The 4hr stacked demand formation seen on the chart between the limits of 1.0550 and 1.0658 will in our opinion not see much of a reaction until price reaches the extreme 4hr demand at 1.0550-1.0573, since this zone is located within the aforementioned daily demand area.
With regards to selling, our team has come to a general consensus that it may be best to wait to see if prices can close below the aforementioned stacked demand formation before considering shorts, as this move would likely open the possibility for shorts down to at least until the 4hr demand area at 1.0461-1.0510 (located deep within the aforementioned daily demand area).
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).