Daily Timeframe: The shows two ‘buying tails’ have formed just above the 1.25618 level. However, at this point in time, it’s very difficult to know whether this buying is legit, since it could just be traders liquidating some of their short positions from the recent downmove. The only way to know for sure would be a follow-through to the upside, preferably closing above the 1.26837 level.
4hr Timeframe: For the time being, the price action on the 4hr timeframe seems to be trading within a small range (1.25947/1.26273).
The Euro is interesting at the moment in that the is showing that the downtrend may continue (break below the 1.26591-1.28010 area), but on the flip side, the is showing potential activity just above a daily decision-point level at 1.25618.
With the above in mind, we are still expecting the downtrend to continue, since in our opinion the signal from the holds more weight than that of the . However, for this downtrend to continue, sell orders will likely be required. For this to be accomplished though, a break above the 4hr range (levels above) would likely need to be seen in our opinion. Active near-term sell orders are currently being seen at 1.26499 (just below a small 4hr decision-point level ), and around the 1.26780 level (just below a fresh 4hr supply area ).
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.26449 (Predicative stop-loss orders seen at: 1.26666) 1.26780 (Predicative stop-loss orders seen at: 1.27061).