So, with price now nibbling at bids around this mid-level hurdle, where do we stand in the bigger picture? Well, the weekly scale shows price trading within touching distance of the weekly at 1.1532-1.1278, while on the daily scale, price is currently standing toe-to-toe with a daily swap (resistance) level at 1.1148. Therefore, shorting this market seems to be the way to go today…
However, with price trading at 1.1150 support, we see very little opportunity to sell into this market right now – even with a break below this number, the next support target is less than 40 pips away at 1.1112! For this reason, today’s plan of attack will consist of waiting to see if prices retrace back up to either 1.1200 or the daily Quasimodo just above it at 1.1233 to sell. Should we see price hit our areas of interest; lower timeframe confirmation will be needed for two reasons. One, it would be difficult, if not impossible; to know which level will see a reaction, if any. And two, there is always a chance that price may fake above both of these barriers to tag in offers sitting around the lower boundary of weekly supply area mentioned above at 1.1278.
Levels to watch/live orders:
• Buys: 1.1000 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
• Sells: Flat (Stop loss: N/A).