Sliding across to the H4 chart, the Quasimodo resistance line at 1.1338 alongside the mid-level barrier just above at 1.1350 held prices lower going into the American session yesterday. On the surface, H4 candle action shows that the bulls have a slight edge in this market right now. Should this encourage follow-through buying, the next area of interest comes in at supply taken from 1.1451-1.1425 – sitting just above psychological resistance 1.1400 and just beneath the aforementioned daily Quasimodo resistance line.
Regardless of the H4 candle action, however, higher-timeframe structure (see above) indicates that the single currency may decline in value, so we all need to be prepared for this. To safely trade this move, nonetheless, waiting for price to close below 1.1300 might be the best path to take as this will prove strength. In addition, this would allow one to take any retest seen to the underside of this line and target H4 demand at 1.1259-1.1236 as a first take-profit target.