In the bigger picture, the weekly chart reveals that price is now within touching distance of the weekly demand area at 1.5169-1.5289, while on the , price is already grappling with a larger daily demand base seen at 1.5189-1.5345. Under these circumstances, we feel there is eventually going to be a push lower to connect with the weekly , which in turn will likely force price to cross paths with a 4hr demand area at 1.5256-1.5294. This 4hr demand is a high probability turning point in our opinion for the following reasons:
1. It is located not only within weekly but also daily demand as well (1.5169-1.5289 – 1.5189-1.5345).
2. Additional support from the round number 1.5300.
3. Additional support from the deep value 0.886.
4. 4hr converging taken from the low 1.5169.
Therefore, should price hit this area (preferably next week as we’re not keen on leaving positions open this weekend), we intend on entering long here with 50% of our usual position size using a market order. The remaining 50% will be used if and only if we see lower timeframe confirming price action.
Levels to watch/ live orders:
• Buys: 1.5256-1.5294 (Stop loss: 1.5242).
• Sells: Flat (Stop loss: N/A).