Daily Timeframe: The shows that a break below the aforementioned weekly Quasimodo would immediately hit a long-term daily demand area coming in at 1.21326-1.22234. Breakout sellers may benefit from knowing this.
4hr Timeframe: As expected, the 4hr demand area seen at 1.23610-1.23918 was indeed taken out. This resulted in further selling which consequently consumed the 1.23 number, and traded directly into a 4hr coming in at 1.22547-1.22832. Even though price is trading around higher-timeframe demand at the moment (see above), entering long here from a risk/reward perspective is a little too risky for our liking for two reasons:
1. The 1.23 level could provide the market temporary resistance putting a halt on any buys.
2. The 4hr mentioned above may well be weak. Check out the break (red arrow) seen on the 08/12/14 at 1.22460.
In the event that a break above 1.23 is seen today, we would then be confident enough to attempt to play the (possible) retest, looking to take first profits around 1.23557. On the other hand, if the sellers take it upon themselves to push the Euro lower, then this could be the ‘end of the road’ for the aforementioned weekly Quasimodo , and would likely attract follow-through selling down towards a 4hr Quasimodo seen at 1.22168 (located just within the daily demand area mentioned above at 1.21326-1.22234).
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).