Given this newly created range, how do things stand on the higher timeframes? Well, weekly movement remains confined between 1.0983/1.0851 (blue/red lines) which has been the case since Dec 7th 2015. Down on the , however, price has been capped by a supply seen at 1.0992-1.0951 and a drawn from 1.0813 since Jan 8th 2016.
On account of the above, shorts from the H4 range resistance 1.0961 is certainly a possibility due to it converging nicely with the above said daily supply (lower timeframe confirmation required). Despite this, a fakeout above this line is highly likely in our opinion, as directly above hangs a H4 Quasimodo at 1.0984, a Fibonacci level at 1.0985 and a psychological resistance barrier at 1.1000. All of this coupled with price sitting within the extremes of the aforementioned daily supply, and also fusing beautifully with the weekly upper band at 1.0983 makes this a key sell zone zone to keep an eye on.
With regards to buying this market, of course one can look to buy from the H4 range support at 1.0861 since this barrier converges nicely with the lower weekly band support perfectly (see above). Nevertheless, we would still advise waiting for the lower timeframes to prove buying strength exists here before risking capital. Reason being is below sits a H4 a Quasimodo support at 1.0819, a psychological support at 1.0800, a 61.8% Fibonacci support at 1.0815 and the daily support we spoke about above at 1.0813, consequently forming a key buy zone to keep a tab on.