Given the points made above, our attention will mostly be driven toward shorts today. ‘Sell the dips’ is a phrase that comes to mind here! And that is exactly what we plan on doing.
Sell zones to keep an eye on are as follows:
1. The mid-level hurdle 1.1050.
2. 4hr supply at 1.1092-1.1074 – be prepared for a fake higher here to 1.1100 though.
3. 4hr supply at 1.1123-1.1107.
We would certainly not advise trading the above areas using pending orders. The safest, and in our opinion, the most logical approach, would be to wait for some sort of lower timeframe selling confirmation before deciding to risk capital. With regards to targets, we intend on playing it speed bump-by speed bump. What we mean by that is, at each supportive structure price hits on the 4hr timeframe following your entry, watch to see how the lower timeframes react. If , consider closing some of your position. In the event that our analysis is correct, one could potentially do this all the way down to the daily Quasimodo we highlighted above at 1.0892.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1050 Tentative – confirmation required (Stop loss: dependent on where one confirms this level) 1.1092-1.1074 Tentative – confirmation required (Stop loss: dependent on where one confirms this area) 1.1123-1.1107 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).