With the above in mind, and the fact that price is also still trading above weekly demand at 1.0519-1.0798, our team’s focus for today will be on looking for longs in this market…
We’re currently eyeing a (perfect) 4hr pattern which completes at 1.0956-1.0946 seen in green. This potential reversal zone (PRZ) comprises of the following:
1. Deep 0.886% taken from swings A-D.
2. 2.0% B-C projection.
3. Alternate 127.2% pattern.
This PRZ is certainly somewhere we’d consider entering long from today. Nonetheless, seeing as it is hovering just above a strong looking 4hr demand area at 1.0924-1.0940, we feel that there’s a very good chance price will, if it reaches this low, likely fake below the PRZ before advancing north. That being the case, our team has come to a general consensus that instead of placing a pending buy order directly above the PRZ, we have opted to wait for the lower timeframes to confirm buying strength exists before jumping in – this should avoid any fakeout that may take place.
Levels to watch/live orders:
• Buys: 1.0924/1.0956 Tentative - confirmation required (Stop loss: 1.0919).
• Sells: Flat (Stop loss: N/A).