Daily view: After the Euro pair shook hands with minor daily support at 1.1143 yesterday – little to no buying interest was seen. As a result, price continued to decline in value and collided with a daily swap area coming in at 1.1051-1.0918.
4hr view: The 4hr timeframe shows that once the European markets opened for business yesterday, the market fell. This move consequently drove price below the 4hr demand area at 1.1065-1.1125 into our small buy zone in green – placed 10 pips either side of the weekly swap level 1.1051 (reported as an area to watch for buy trades in our previous analysis). This green buy zone is not only backed with weekly/daily demand (see above), but also a 4hr extended from the low 1.0519. With all this though, the buyers, as you can see were unable to hold above 1.1100, suggesting potential lack of interest from the buyers here.
Our next move is simple – sit on our hands and watch price action! If price can once again push above 1.1100 and convincingly retest this number as support, this, in effect, will be our cue to begin watching for lower timeframe buying confirmation. Dependent on how price behaves around this level, we’d first be looking to target 1.1150 as a potential trouble area, but ultimately we’ll be looking to take full profits at 1.1200.
Levels to watch/live orders:
• Buys: Flat (Predicative stop-loss orders seen at: N/A).
• Sells: Flat (Predicative stop-loss orders seen at: N/A).