In view of price now trading below not only 1.1250 but also a ignored Quasimodo resistance just above it at 1.1257, would we consider this a stable enough platform to sell from today? 100% we would! Supporting the aforementioned resistances are the following structures:
1. A approach that completes around the 1.1250 mark.
2. 78.6 Fib at 1.1254.
3. One could also consider this a nearly complete , hence the defining limit of our sell zone being the 88.6% Fib level at 1.1270.
4. The base of a daily supply area at 1.1329-1.1269 sits on top of the above said 4hr structures.
5. And, finally, we mustn’t forget that price still remains loitering around the underside of weekly supply at 1.1532-1.1278.
Taking into account the confluence seen in this market today, we’re confident a rebound will likely be seen from the 1.1250/1.1270 region. That being said though, there is always the chance the big boys may edge price into stops above the sell zone into the jaws of the aforementioned daily supply. Therefore, we would recommend waiting for lower timeframe price action to confirm strength exists here before placing a trade – just to be on the safe side!
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1250/1.1270 Tentative- confirmation required (Stop loss: dependent on where one confirms this area).