Daily Timeframe: The clearly shows there is some buying interest currently being seen off of the 1.12775 level. Nevertheless, it is very difficult to ascertain whether this buying is legit, as it could just be short covering in motion. Let’s take a look on the 4hr timeframe to see what we can find.
4hr Timeframe: The 4hr timeframe shows that our buy order set just above the 4hr decision-point demand area (1.12624-1.12873) at 1.12916 has been filled. The first take-profit target we have our eye on is the 4hr supply area above at 1.13582-1.13376.
We are very confident that higher prices are going to be seen from here, the reason for this, apart from being in an excellent higher-timeframe position, is how price reacted off the 4hr demand area. Notice that the initial reaction printed an indecision candle where the high likely consumed any sellers around 1.13168, a small 4hr support flip level. Therefore, there is likely very little selling opposition until price hits the aforementioned 4hr supply area above.
• Buy orders: 1.12916 - LIVE (Predicative stop-loss orders seen at: 1.12534).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).