Considering the higher-timeframe picture (see above) and that price is now lodged beneath 1.1300, we feel the single currency could make a try for at least the 1.1248 lows made on 14/15th April today (pink circle). For all that though, in order for us to be permitted a short trade here, we’d need to see the lower timeframes confirm 1.1300 before risking capital at this line. What we mean by confirm here is simply one of the following: a break/retest of demand, a break/retest or simply a collection of selling wicks around some form of lower-timeframe resistance.
Assuming that this trade comes to fruition and price hits its first target; we’d then be looking down to the H4 demand drawn from 1.1168-1.1190 as our final destination (sits on top of daily demand coming in at 1.1143-1.1187), which would essentially complete a nice-looking 1:1 move (see black arrows).
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1300 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area).