Weekly view: The weekly timeframe shows that price is trading within a weekly supply area coming in at 1.1532-1.1278.This supply zone is a very significant hurdle in our opinion (held price lower since the 11th May) since if there’s a sustained break above this area, our long-term bias (currently short) on this pair will very likely shift north.
Daily view: Thanks to yesterday’s advance, price is now lingering only sixty or so pips below a daily Quasimodo cluster zone at 1.1390/1.1421 (located relatively deep within the aforementioned weekly supply area), so for anyone who is considering longs on this pair may want to take a note of this.
4hr view: The latest coming in from the 4hr timeframe reveals price has just recently taken out the round number 1.1300, and slam dunked itself into the jaws of a 4hr Quasimodo resistance base at 1.1384-1.1344. Given that the weekly timeframe shows price in supply (see above) at the moment, we are going to be keeping a close eye on price action around this 4hr zone today. Should we see a confirmed lower timeframe setup here, our first potential trouble area will likely be around the recently consumed 1.1300 number.
Nevertheless, as we can see from the daily timeframe there is still room for price to move further north yet. Therefore, in the event that further upside is seen, our attention will shift towards the 4hr Quasimodo resistance base in green just above at 1.1443-1.1411 (encapsulates the aforementioned daily Quasimodo cluster zone) for possible shorting opportunities.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A). • Sells: 1.1384-1.1344 [Tentative – confirmation required] (Stop loss: dependent on where one confirms this area) 1.1443-1.1411 [Tentative – confirmation required] (Stop loss: dependent on where one confirms this area).