In light of price now trading around 4hr supply at 1.1242-1.1212 right now (surrounds a daily swap (resistance) level at 1.1214), where do we see this market heading today? Well for starters, the approach to the current 4hr is interesting (blue ). Check out how each time price rallied higher a spike lower was seen to collect unfilled buy orders, thus suggesting weak bids below price. On the contrary, the majority of offers may have already been taken out within the current 4hr supply (black arrow), which could potentially weaken the chances of a second rebound from here. The next fresh area above comes in around the 1.1279/1.1300 region which lines up perfectly with the underside of weekly supply at 1.1532-1.1278.
So, in a nutshell our team’s bias remains short on the EUR pair for the time being. Areas we have our eye on are the aforementioned 4hr , and also 1.1279/1.1300. Both zones have the potential to hold price lower in our opinion, but just to be sure, we would recommend only entering short should lower timeframe confirmation also be present.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1242-1.1212 Tentative – confirmation required (Stop loss: dependent on where one confirms this area) 1.1279/1.1300 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).