Alongside this 4hr buy zone, price is also shaking hands with the underside of a weekly supply drawn from 1.1532-1.1278, thus we feel a bounce lower could take place from here today. The cool thing about this 4hr area is there is also a deep 78.6% Fibonacci at 1.1280, and clear space to run 40 pips south to supply – turned demand at 1.1242-1.1212. With lower timeframe confirmation and a small stop here, one could possibly short from here with reasonable risk/reward.
However, there is a chance price may fake above 1.1300 today. This would not only clear out traders attempting to fade this level, but also allow price action to connect with a minor daily resistance sitting at 1.1313. This is why we insist on having confirmation from the lower timeframes before jumping in to sell this market.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.1279/1.1300 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).