Daily Timeframe: The shows that the buyers and sellers are currently battling for position within a daily supply area seen at 1.25056-1.24180. Most of the selling opposition will need to be consumed here before the market can hit 1.24996.
4hr Timeframe: A relatively strong breakout above a 4hr has recently been seen on the Euro . This will likely get breakout traders buying with excitement, not knowing they’ve effectively just bought into not only a 4hr swap level at 1.24378, but also into the aforementioned daily supply area as well.
We would rather wait for some sort of confirmation before buying into this break. This most likely scenario we see playing out is as follows. The market will likely rally a little higher up towards 1.24500 (the Euro tends to react of off this number frequently) before seeing active selling, bringing prices back down towards 1.24. It would be at this point we’d begin looking for lower-timeframe confirmation around the 1.24051 mark, with a take-profit target likely set around 1.24835, just below a 4hr Quasimodo at 1.24892 (located 10 or so pips below the weekly swap level mentioned above at 1.24996).
Current buy/sell levels:
• Buy orders: 1.24051 (Predicative stop-loss orders seen at: Dependent on where this level is confirmed).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).