Daily Timeframe: After a lackluster performance over the past three days, buying interest was seen coming into the market from within a small daily demand area at 1.1260-1.1318. This move was very likely fuelled by the negative U.S unemployment data released yesterday.
4hr Timeframe: The 4hr timeframe shows price has broke out of its 74-pip range (1.1343-1.1269), which consequently attracted further buying up to the 1. 1400 handle. No major Eurozone data is due for release today, so technicals will likely control most of the trading activity in upcoming sessions…
A break above the 1. 1400 number could well see a rapid retest forcing the market towards a small 4hr supply area coming in at 1.1497-1.1462. Buying the potential retest is valid strategy as long as one remains aware that they are buying very close to the weekly supply area (see above in bold). In fact, the 4hr supply area is located just within the weekly supply area!
Conversely, In the event that sellers are able hold the market below 1. 1400 today, this would likely push price back down to retest the upper limit of the recently broken 4hr range (see above). Selling at market around 1. 1400 would be considered a risky trade in our book. So, with that, we intend to wait for price action on the lower timeframes to confirm that selling strength is present before considering a short trade here.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: currently watching 1. 1400 for selling confirmation on the lower timeframes (Predicative stop-loss orders seen at: dependent on where one confirms this level).