Daily Timeframe: Thanks to the , we know that going long for the time being may not be the best path to take, as price is currently ranging between a small daily supply area at 1.25763-1.24794, and a long-term daily demand area seen at 1.22877-1.23809. It is only once one of these areas is consumed, will we then have some idea on where price is likely to trade to next.
4hr Timeframe: The 4hr timeframe shows that there was a clear buying opportunity around 1.24 with lower-timeframe confirmation. The signal came from the 15 minute chart in the form of a fakeout below the low 1.23936; it was a thing of beauty! The risk/reward was fantastic if one held their position up to 1.25.
We feel that any trade taken on this pair for the time being will require confirmation from the lower timeframes. Touch trading will only be valid once we see some sort of direction from the .
The levels we have our eye on today are as follows: 1.24 - buying here again (1.24057) is something we would consider with the right confirmation. We also still like the look of the 4hr demand area below at 1.22942-1.23491 (located relatively deep within both of the higher-timeframe demand areas mentioned above), an alert has been set around 1.23557 to let us know it’s time to watch the lower timeframes.
• Buy orders: 1.24057 (Predicative stop-loss orders seen at: 1.23749) 1.23557 (Predicative stop-loss orders seen at: 1.22894).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).