With the above points in mind, let’s take a peek at the bigger picture… Weekly demand at 1.4005-1.4219 has yet to register intent, which is quite concerning. Along the same vein, daily demand at 1.4090-1.4195 is also on the brink of destruction, as price is currently testing the lower edges of this area as we write. If this zone does indeed give way, there is immediate support seen just below in the form of a daily Quasimodo support coming in at 1.4052. This is, in effect, the last barrier of support shielding this pair from dropping down to cross swords with 1.3878 – another daily Quasimodo support (seen located within a weekly at 1.3501-1.3804 – the next downside target beyond the current weekly )
Our suggestions: We would recommend holding fire trading this pair given the above notes. There is always another day, and trading when unsure is a sure fire way to lose money in the markets as we then become emotional!