Despite this flurry of buying and selling, we can see that price made little ground during the day, closing a mere 7 pips below yesterday’s close at 1.1208. What this move did do, nonetheless, was reinforce the daily at 1.1135 seen housed within the daily coming in at 1.1224-1.1072. As as this may seem though, let’s not forget that the weekly candles remain trading around a major seen at 1.1533-1.1278, which has held this market lower since May 2015!
Our suggestions: Personally, we have no interest in buying this market unless a decisive break above the September 15th daily high at 1.1284 (red arrow) is seen. Even then though, we would be wary of buying due to the weekly currently in play.
Seeing as how price is now seen finding a foothold above the 1.12 mark right now, we once again find ourselves honing in on the H4 Quasimodo drawn from 1.1257. Not only does this level boast a converging H4 resistance (1.1327) and H4 mid-way resistance at 1.1250, but the apex of this Quasimodo formation (1.1279) is bolstered by the underside of the aforementioned weekly resistance area! As such, a pending sell order has been placed at 1.1256, along with a stop set at 1.1281.