Daily Timeframe: The shows that for the market to continue rallying, the buyers will need to consume any selling opposition around the small daily supply area seen at 1.25056-1.24180. In the event this area is consumed, the buyers will have to almost immediately contend with another daily supply area located directly above at 1.26386-1.25459 (seen just below the aforementioned minor weekly swap level).
4hr Timeframe: It was reported in the previous analysis that if the market broke and retested 1.23 as support, we’d be interested in buying with our take-profit target set at 1.23633. As we can all see this did indeed play out. We do hope some of our readers took advantage of this 100 pip + move! We personally had our eye on the 15 minute timeframe decision-point demand area seen at at 1.22885-1.22952, but we were unfortunately not at our desks when it hit around 3.45am GMT time – very unfortunate, the risk/reward was mouthwatering!
Only recently, a deep test/spike was seen pf 1.24, this very likely stopped a bucket-load of traders out. This wick means selling to us considering that it lines up beautifully with the current channel resistance as well. For any traders currently short, please be aware that this could only be a small bounce and not a reversal south for two reasons:
1. We are in higher-timeframe weekly demand (see above) at the moment, and higher prices are expected (in our view).
2. Active buyers are likely waiting around 1.23428, a minor 4hr swap level.
We do not currently see any opportunities to safely enter the market at the moment; therefore we are going to remain flat 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).