Technically, this recent sell-off should not really come as much of a surprise seeing that price has been lodged within a major area of weekly supply at 1.1533-1.1278 for the past few weeks! Consequent to this move, daily demand at 1.1385-1.1332 was engulfed (now acting supply) which looks to have cleared the rubble for a continuation move down to demand seen at 1.1143-1.1187.
As things stand, our prime focus today will be on shorting this market. Ultimately, what we’re looking for is a retest of 1.1300 as resistance together with lower timeframe confirmation (engulf of demand/break of a etc…). Should this come to fruition, we plan on trailing this position down to H4 demand chalked up at 1.1168-1.1190, which conveniently sits on top of the daily demand mentioned above at 1.1143-1.1187.