Daily Timeframe: In our opinion the is currently showing buying strength, as price has broken above a minor daily support flip level at 1.58736 with room to move up to a small daily decision-point supply area coming in at 1.60210-1.59700.
On a side note, this supply area remains very important to us as it was here that pro money likely made the ‘decision’ to initially break below the aforementioned weekly demand area. If this area of supply is consumed, the path north will likely be free to test 1.61609, a daily support flip level that is located deep within the aforementioned weekly supply area.
4hr Timeframe: The 4hr timeframe shows that price has just recently broken above the round-number level 1.59. Assuming price can close above this level; we see very little reason not to try and attempt to trade the retest targeting a small 4hr coming in at 1.60008-1.59822, since at the time of writing, we have short-term strength being shown on the (see above) giving us confidence that 1.59 will likely hold (1.59043). However, touch trading psychological levels such as this is always risky, as in our experience these levels are prone to deep tests which normally stops a lot of traders out. Waiting for price-action confirmation on the lower timeframes here works best for us. In the event that price breaks lower, we would definitely consider touch trading the 4hr demand area seen at 1.58338-1.58573 around 1.58604, since this area remains fresh and likely has unfilled buy orders remaining there.
• Buy orders: 1.59043 (Predicative stop-loss orders seen at: 1.58783) 1.58604 (Predicative stop-loss orders seen at: 1.58283).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).