Daily Timeframe: The is not really offering us much more than the since price is currently seen rebounding from the 1.0499 daily swap (support) level, which, as you can probably remember, is the low of the aforementioned weekly demand area. However, what the is not showing us is the fact that the bounce seen from 1.0499 has pushed price up to the underside of a daily swap level positioned at 1.0664. A convincing push above here would likely pave the way north towards a daily supply area seen at 1.0905-1.0821.
4hr Timeframe: Looking at the 4hr timeframe, we can see that price is now retesting the 1.0600 handle, following a recent push into a fresh 4hr decision-point supply area seen at 1.0715-1.0666 (positioned just above the daily swap level 1.0664).
On the assumption that the buyers can hold the Euro above 1.0600 today, this will likely attract further buying power for a second attack of the aforementioned 4hr decision-point supply area. Our team has reported that a close above this area would, in effect, be our cue to begin watching for price to retest this zone as demand – take note of the clear run seen above to 1.0800! In addition to this, a close above this barrier would also likely confirm that the recent break below weekly demand could very well be a fakeout, since a clean close above this area would also, at the same time, take out the 1.0664 daily swap level, thus suggesting buying strength has entered the market.
With regards to selling, even if price breaks below 1.0600, risk/reward would be less than 1 from here down to 4hr demand at 1.0492-1.0549, which is not exactly tempting we have to be honest!
Why must you frighten me after I've gone short at 1.06227? Just let me hit my first target and take partial profits before we go to your number.