Daily Timeframe: The rebound seen from the fresh daily demand area at 1.1045-1.1127 (surrounds the aforementioned weekly Quasimodo ) extended higher recently, which consequently saw price hit a long-term daily swap level coming in at 1.1378. Taking out this level could see another round of buying towards a daily decision-point supply area seen at 1.1678-1.1540 (located deep within the aforementioned weekly supply area).
4hr Timeframe: Recent developments on the 4hr timeframe reveal that price has broken above 4hr supply seen at 1.1368-1. 1313 , and as such forced the market to test the 1. 1400 handle.
Buying the Euro here based on the weekly Quasimodo at 1.1109 could potentially cause unnecessary stress, especially with price currently trading around a daily swap level (see above) and 1. 1400 seen holding the market lower. Waiting for price to break above and retest the minor 4hr swap level at 1.1458 would be a far more conservative approach (as per the red arrows), and one that we firmly support.
Waiting for the above to happen on the 4hr timeframe will with a high probability pave the way north up to at least 4hr supply sitting at 1.1678-1.1589 (located very deep within the aforementioned daily decision-point supply area), and thus opening up a nice profit target highlighted in green.
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).