Daily view: The pin-bar rejection seen on Thursday from the daily Quasimodo cluster zone at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area) saw little follow-through going into Friday’s session. In fact, both sides of the market appeared indecisive, consequently closing out the week printing a daily indecision candle.
4hr view: During Friday’s sessions, we can see that 1.1300 held as support which as a result saw price test a newly formed 4hr supply at 1.1399-1.1356 into the close (located around the aforementioned the daily Quasimodo cluster zone).
The open 1.1373, however, saw price gap north 28 pips, consequently forcing price higher into the aforementioned 4hr supply area. Despite this, we still believe that this market is in a fantastic position (see higher timeframes) to continue selling off today/this week. However, today may be a bit tricky as the market will likely be awaiting the outcome of the Euro summit as to whether an agreement can finally be reached regarding Greece. With that in mind, our team has decided we’re going to WATCH the following zones for potential SELL opportunities:
1. Current 4hr supply area coming in at 1.1399-1.1356.
2. The 4hr Quasimodo resistance base seen in green at 1.1443-1.1411.
3. 4hr swap level seen at 1.1476.
Our team does not intend to set any pending sell orders at any of the aforementioned areas, we’re patiently going to see what the lower timeframe price action tells us – we’ve found it is always best to wait for lower timeframe confirming price action when unsure.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1399-1.1356 (Stop loss: 1.1404) 1.1443-1.1411 (Stop loss: dependent on where one confirms this area, but would likely be around the 1.1469 mark) 1.1476 (Stop loss: dependent on where one confirms this level).