Daily Timeframe: The reveals exactly why we are a bit cautious about buying into this market. Price has been consolidating between a minor daily support flip level seen at 1.61609 and a combined daily demand/Quasimodo coming in at 1.58533-1.59914/1.58934 since the 03/10/2014 (located deep within the aforementioned weekly demand area). It is only until one of these areas sees a positive close; we will then have some idea on future direction. Let’s see what we can find on the 4hr timeframe.
4hr Timeframe: The 4hr timeframe shows ever since the market opened at 1.59595, price has been consolidating between 1.59529 and the huge psychological number 1.6. In our humble opinion, this type of price action is not safe to trade. We would however be interested in buying if price were to break out of the downward trending channel marked in pink and retest 1.6 as support. This level would provide a nice base to go long from targeting the 1.60871/1.61 area. Be that as it may, in the event that price keeps trading south within the down trending channel, price will very likely hit a 4hr demand area coming in at 1.58533-1.58915 (tentative buy orders are seen just above at 1.58960), which we believe should produce a bounce at the very least, since it is located deep within both the weekly and daily demand areas mentioned above.
• Buy orders: 1.58960 (Predicative stop-loss orders seen at: 1.58449).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).