Daily Timeframe: The shows that there are two prominent areas of resistance that the buyers have to overcome, before any move higher can ensue from the current daily decision-point demand area at 1.55602-1.56802 (seen within the aforementioned weekly demand area). The first obviously being the 1.57166 level already mentioned above, and the second – a firm-looking daily supply area seen at 1.59438-1.58338. Let’s see what the 4hr-timeframe picture looks like.
4hr Timeframe: It was mentioned in the previous analysis that we were going to watch for lower-timeframe buying confirmation around the 4hr coming in at 1.55917-1.56299. Unfortunately, we could not see any safe entries to enter long.
With both the weekly and showing very little direction (see above), trading this pair has become quite difficult. There are still opportunities to trade in our opinion, but only if the targets are kept small and manageable.
Given the points made above, we intend to trade this pair the following way:
1. Price is currently trading around 1.57, which is if you remember only 16 pips below the weekly support swap level at 1.57166. So, with that in mind we are going to watch the 15/5 minute timeframes for any short-term selling opportunities that may arise, targeting the 4hr coming in at 1.55917-1.56299.
2. Assuming that price breaks above 1.57, this will be our cue to consider buying the retest (if seen of course), with our first take-profit target set at the high 1.57629, and the second seen at 1.57941 just below 1.58.
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Currently watching for confirmation around the 1.57 area (Predicative stop-loss orders seen at: N/A).