Daily Timeframe: The daily supply area at 1.61255-1.60498 has been well and truly consumed, and as a consequence has cleared the path north up to a daily decision-point supply area seen at 1.62860-1.62109. However, before price hits this area, there is a strong possibility that we could see a retracement back down towards daily demand at 1.58533-1.59914 (located deep within the aforementioned weekly demand area), which is where price just came from.
4hr Timeframe: Price is currently trading around a very important combined 4hr demand/round number area at 1.60789-1.61071/1.61. This level is important for a number of reasons as this is in our opinion is where a decision needs to be made:
1. If price breaks below here, this would likely clear the path south down to at least the 1.6 level, as demand has already likely been consumed with those two buying tails seen marked with blue arrows at 1.60284/1.60585.
2. Assuming the above does happen, price would then be trading around the daily demand area (1.58533-1.59914), and at the same time indicate potential buying weakness out of the weekly demand area mentioned above at 1.58533-1.60157.
3. In the event price holds above the aforementioned combined 4hr demand area, this will likely attract further buying into the market, which as a result may see price challenging a combined 4hr supply/round number area at (1.62255-1.61910/1.62), which conveniently sits just below the aforementioned daily decision-point supply area.
Therefore, with the above taken into consideration, we are going to remain flat on this pair, and let price action unfold.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).