Daily Timeframe: The on the other hand shows that just below the aforementioned weekly Quasimodo , price is currently dancing around the upper limits of a long-term daily demand area seen at 1.21326-1.22234, where active buyers could indeed be waiting.
4hr Timeframe: It was mentioned in Monday’s analysis that we would be looking for lower-timeframe buy signals between a 4hr Quasimodo seen at 1.22168 and the round-number 1.22 (green area), and that our first take-profit target would be the 4hr supply area seen above at 1.23010-1.22734. As we can all see, the market did indeed rally higher, but unfortunately did not hit 1.22168 beforehand so we missed this move entirely. All is not lost though; we still feel there is a good chance that higher prices may still be seen from this green area, if/when price returns here, and as such, we’re still open to the possibility of buying here in the near future.
The reason we believe higher prices are still possible from here is simply because along with the daily demand area mentioned above at 1.21326-1.22234, the aforementioned 4hr Quasimodo level and round-number 1.22, we see extra support coming in from a 4hr line (limits can be found at: 1.27696-29/10/14 – 1.24378-02/11/14.
With combined support being seen from the daily and 4hr timeframes (see above) at the moment (see above), it certainly smells like a fakeout is boiling just below the aforementioned weekly Quasimodo . Only time will tell though.
Current buy/sell levels:
• Buy orders: Will watch for lower-timeframe buy entries between 1.22168/1.22 (Predicative stop-loss orders seen at: dependent on where one confirms the level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).