With that being said, how do things stand on the higher timeframes? Daily action has put in some space above the recently broken at 1.3104 (now acting support), suggesting that the bulls may continue to march north today to shake hands with the daily seen at 1.3371-1.3279. In addition to this, weekly candles recently chalked up a relatively nice-looking candle, which seems to have sparked a reaction in the market. However, while further upside is possible let’s not forget that this pair remains in a relatively strong downtrend at present!
Our suggestions: Watch for the unit to breach the 1.32 handle today as this would likely prompt further buying up to a H4 at 1.3290-1.3242, and more importantly, the H4 reversal zone seen between 1.3346/1.3263 (green zone). Seeing as how this H4 area is lodged within the daily supply mentioned above at 1.3371-1.3279 and the predominant trend is pointing south, a short within this region is certainly something that interests us. Ideally, we’re looking to sell around the 1.33ish region with our stops placed above the X point of the H4 .
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.33 region (Stop loss: 1.3374).