To start with, there is immediate 4hr supply lurking just above current price at 1.1346-1.1319. Furthermore, both the weekly and daily timeframes show there is room to continue diving south. The nearest support, as far as we can see, comes in from the daily scale at an ignored daily Quasimodo level at1.1233 (positioned just below the aforementioned 4hr demand area). This, in itself, could very well tempt well-funded traders to fake below the current 4hr and take out stops!
Therefore, given the points made above, we shall not be looking to buy this market today unless price fakes below and closes back within the current 4hr demand. Lower timeframe confirmation will still be needed following a fakeout here, however, simply because, as we mentioned above, the path south on the looks clean down to weekly demand at 1.0519-1.0798. Should this long trade come to fruition, partial profits will be quickly taken at 1.1300. It would only be once/if price closes above and retests this number as support, would we then feel safe to move our stop to breakeven. It will be interesting to see what the day brings!
Levels to watch/live orders:
• Buys: Watch for a fakeout below 4hr demand at then look to enter long with lower timeframe confirmation.
• Sells: Flat (Stop loss: N/A).