Stepping across to the H4 chart, demand at 1.4514-1.4475 which held beautifully on Wednesday, is in actual fact the decision-point area where the market decided to push above the 18th March highs. It will only be until this zone is taken out can we expect to see price drive down to daily demand at 1.4297-1.4393 (the next down-side target on the ), essentially the 1.4400 handle on the H4 chart.
Right now, price is trading within a nice-looking H4 sell zone marked with a yellow box:
• A H4 Quasimodo at 1.4649.
• A broken weekly Quasimodo seen at 1.4633.
• Psychological resistance 1.4600.
With everything taken into consideration, we feel a short from here is viable today. Nevertheless, given that the H4 demand at 1.4514-1.4475 recently held firm (which as we already know is connected to the break of daily highs – see above), we’re only going to be looking to enter short with the aid of lower timeframe price action confirmation. A break of lower timeframe demand and retest of this area as supply would be perfect, a break below and retest of a or even a collection of selling wicks around lower-timeframe resistance would suffice in our opinion.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.4649/1.4600 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).