Daily Timeframe: The Euro continues to lose ground as prices took yet another tumble yesterday. This consequently saw the small daily decision-point level seen at 1.26545 consumed, and as a result the path south now looks relatively clear down to a daily demand area coming in at 1.24642-1.25616.
4hr Timeframe: The 4hr timeframe shows that price is currently trading around a fresh 4hr demand area at 1.26236-1.26469; however we must say, things do not look very promising here for the buyers at the moment. Below this area shows that other than the 1.26 level, most of the demand to the left has already likely been consumed. So, assuming that this area of demand is broken, then there is a strong possibility a sell off could be seen down to around a 4hr Quasimodo level seen at 1.25699 (active buy orders are seen just above at 1.25744). What also makes this level more appealing is the fact that it’s sitting just above the daily demand area seen at 1.24642-1.25616.
With the above being said, we have to also be prepared for active buyers to come into the market around the current aforementioned 4hr demand area. If that is the case, then we feel there is a good chance price could rally up to at least the 1.27 level, as there appears to be very little selling opposition/supply above.
• Buy orders: 1.25744 (Predicative stop-loss orders seen at: 1.25593).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).