In view of price now kissing the underside of 1.0900 right now, what direction do we see this pair heading today? Well, we have little interest in shorting from here, since price is currently trading from not only a weekly range demand at 1.0519-1.0798, but also a daily swap (support) level at 1.0813. To that end, what we’re looking for is a sustained move above 1.0900 during today’s sessions. To our way of seeing things, this would effectively clear the path north up to the large psychological resistance 1.1000 (converges nicely with the 50.0% Fibonacci level at 1.1002), followed closely by supply at 1.1029-1.1010. Reason being is that near-term supply at 1.0969-1.0944 has likely been consumed by the strong wick seen marked with a black arrow at 1.0980.
On account of the above structure, our prime focus today will be looking for price to close above 1.0900 and retest this level (with lower timeframe confirmation) as support. Should this come to fruition, we’ll be eyeing the top-side of the aforementioned near-term supply at 1.0969 as our immediate take-profit area since there may be residual orders left over, followed by 1.1000 for trade closure.
Levels to watch/live orders:
• Buys: Watch for offers to be consumed around 1.0900 and then look to trade any retest seen at this number (confirmation required).
• Sells: Flat (Stop loss: N/A).