Consequent to the above, price is also now trading at the underside of a daily swap (supply) area at 1.5338-1.5392. Alongside this, however, we mustn’t forget that the shows trade has recently rebounded from channel support (1.4564) and, as far as we see, still has room to appreciate up to resistance drawn from the high 1.7190.
Therefore, here is two pips’ worth on what we may see from this market today… Given the indicating further upside is possible; shorts from the current 4hr supply can still be taken, but only for an intraday bounce back down to 1.5300 just to be safe! Ultimately though, we have our eye on the psychological resistance above at 1.5400 for a heavier sell-off. The reasons for why are as follows:
• Swap level history at 1.5400.
• 50% Fibonacci level at 1.5385.
• Converges with the aforementioned weekly .
• Positioned just a few pips above the daily swap (supply) area mentioned above at 1.5338-1.5392.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 1.5363-1.5340 Tentative – confirmation required (Stop loss: dependent on where one confirms this area) 1.5400 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).