Daily view: From this angle, however, we can see that price is trading in what we like to call a ‘mid-range phase’. Essentially, all this means is that the market is presently trading in no man’s land between a daily Quasimodo cluster zone at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area) and a daily swap area seen in yellow at 1.1051-1.1000.
4hr view: For those who read our previous report on the Euro , you may recall us mentioning that we placed a pending buy order at 1.11845, just above the 4hr Quasimodo in green at 1.1181. We did this to try and catch any stop hunt below the round number 1.1200. As you can see, a fakeout was seen but price missed our order by a mere five pips, which was a shame really considering price went straight to our target – the 4hr Quasimodo in red at 1.1276.
In addition to the above, we also said that the aforementioned 4hr Quasimodo and the round number just above it at 1.1300 is a great place to look for (lower timeframe) confirmed sells. For those who did not read the previous report, we said this simply because of where price is located on the at the moment (see above – weekly supply). Therefore, given the points made above, our prime focus for today will be on looking for confirmed shorts between 1.1276/1.1300. Should we happen to spot an entry signal short here, our first take-profit target will likely be set around the 1.1237 mark. The second will likely be around the 1.1200 number.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1276/1.1300 (Stop loss: dependent on where one confirms this area).