Following this, we went on to explain that should price should reach 1.1000, we would then begin looking for confirmed sells into this market since it converged beautifully with the following structures:
1. 4hr supply mentioned above at 1.1034-1.1000.
2. Minor 4hr which completes at 1.1014 within the aforementioned 4hr supply.
3. Positioned within a daily supply area coming in at 1.1083-1.1006.
4. 50.0% Fibonacci resistance taken from the high 1.1214 to the low 1.0807.
A few hours after closing our long trade, we found a confirmed short on the 15 minute timeframe at 1.10013 off of the back of a very subtle Quasimodo going into yesterday’s London afternoon session, which, at the time of writing, is just sitting in the green. We have to be honest here though; we’re a little concerned about the 4hr swap level below at 1.0964, as support is being seen from this region. Essentially, for us to feel confident here, we’ll need to see this barrier taken out, where at which point, we’ll look to target 1.0900 which converges with the 50.0% (circled in pink) of swings A-D (minor pattern) to end the week.
For anyone else currently short with us, we must be clear here guys that we remain prepared to close this short should support continue to hold as let’s not forget that we have effectively sold into potential weekly buyers from demand at 1.0519-1.0798.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.10013 (Stop loss: 1.1040).