Daily Timeframe: It was reported in the previous analysis that traders should be cautious regarding selling the weekly two-bar pattern, as we saw price had effectively traded into daily support seen at 17717. However, with the strong selling momentum currently being seen, and price now clear of any near-term support, we feel there’s a good chance that the daily swap level seen at 17362 will be seeing some action very soon.
4hr Timeframe: Temporary support on the 4hr timeframe appears to be forming around the 17500 region. Ultimately though, we do not expect this to hold for very long as further selling is expected down towards a 4hr decision-point demand area coming in at 17326-17381, which if you look to the left of current price, you’ll see that this area is beautifully located around the daily swap level mentioned above at 17362.
We still have a pending buy order set at 17392 just above the aforementioned 4hr decision-point demand area, as we believe a bounce at the very least will be seen from here. In the event however that this area is breached, increased selling interest will likely be seen down towards the ignored weekly Quasimodo level mentioned above at 17135.
Current buy/sell levels:
• Buy orders: 17392 (Predicative stop-loss orders seen at: 17320).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).