‘As one door closes another one opens’ as they say. Notice that price has chalked up another bull pattern that bottoms out just below the above said demand at 1.3029. This – coupled with the converging daily swap (demand) zone seen at 1.3074-1.3025 and the 50.0% Fibonacci support at 1.3055 could be enough to bounce price into profit.
The only drawback to this trade is the shows room for price to continue lower from supply at 1.3456-1.3277 down to the swap support at 1.2833. Therefore, for us to be confident risking capital here, we’d need to see lower timeframe support hold firm, thus confirming strength exists.
Levels to watch/ live orders:
• Buys: 1.3038-1.3082 Tentative – confirmation required (Stop loss: dependent on where one confirms this area as a fake lower could be seen here).
• Sells: Flat (stop loss: N/A).