Daily Timeframe: The reveals that price has broken through a notable daily demand area coming in at 1.24642-1.25616, which at the time of writing appears to be a perfect fakeout spike. With that being said, if we were using just the weekly and daily timeframes, it would be very difficult to judge direction. Price could easily still continue south from here towards either the daily support flip level at 1.24062, or even the daily demand area just below it at 1.22877-1.23809, both of which are still firmly located within the aforementioned weekly demand area.
4hr Timeframe: Price has reacted beautifully around the 4hr resistance flip level seen at 1.24408 (located just within the aforementioned weekly demand area). However, the question we all need to ask ourselves is will price continue higher from here? We believe it could be possible. However, we personally would not be entering long just yet. Confirmation is needed! The 4hr timeframe shows that price appears to have consumed most of the sellers around the round-number level 1.25, and with that, the path north ‘should’ be clear up to the 1.25380 mark. In order for us to buy into this market we would need to see price fakeout below the low 1.24378, as the stops taken from this fakeout would likely fuel further buying.
Therefore, with the above taken into consideration, we have decided to sit on our hands for the time being, and let price action unfold.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).