Daily Timeframe: The shows that sellers entered the market yesterday from within a daily supply area seen at 1.25056-1.24180, which incidentally is seen just below the aforementioned weekly swap level. Assuming that the sellers do not lose their enthusiasm here, a test of a long-term daily demand area seen at 1.21326-1.22234 could be seen (located just below the aforementioned weekly Quasimodo ). It will be interesting to see what the 4hr timeframe chart shows.
4hr Timeframe: For anyone who read our previous report on this pair, you may recall us mentioning that we were looking for confirmed longs from around 1.24 targeting the 4hr Quasimodo at 1.24892. As we can all see price did indeed reach the target, but failed to give us our entry.
The selling momentum seen from 1.24892 has forced the market down to a nice-looking 4hr demand area seen at 1.23610-1.23918. Buying from here is indeed tempting, since it lines up beautifully with the support (prior resistance). However, we are going to hold fire here as we do not want to be buying from higher-timeframe sellers (Weekly swap level: 1.24996 – Daily supply: 1.25056-1.24180).
That being said though, if the 1.24 level is taken out, and retested as support, we would consider buying a short-term position with the take-profit target set around the aforementioned 4hr Quasimodo . Other than this though, we do not see any other safe entries on this pair for the time being.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).