Weekly Timeframe: The weekly timeframe shows that the buyers conquered yet another key weekly swap level last week seen at 1.2260. This move has potentially opened the gates for prices to challenge a major weekly Quasimodo resistance level seen at 1.2765.
Daily Timeframe: Yesterday’s trading action shows that the sellers could be making a comeback, as prices turned bearish deep within a daily supply area seen at 1.2504-1.2385, although, at this point in time, it is really too early to tell if this is merely traders liquidating longs, or actually genuine selling.
4hr Timeframe: Recent developments on the 4hr timeframe show that price turned literally to-the-pip at the 1.2500 handle. This consequently forced the market down to 1.2400 where the buyers and sellers are currently seen pulling for position.
A convincing break below 1.2400 would likely attract further selling down towards 1.2300; it would be at this point things would get interesting. The green area constitutes what we believe to be a highly confluent buy zone. It consists of the 1.2300 handle, a weekly swap level at 1.2260, and a 4hr ascending channel support level (prior resistance – 1.1616/1.2016). Our team will (if price reaches this far of course) attempt to ‘scalp buy’ into this trade with small positions as price action proves itself, therefore, we’re ultimately going to be watching the 5/15 minute timeframes for confirmed long entries within this zone.
Current buy/sell levels:
• Buy orders: watching for confirmed trades between 1.2300/1.2260 (Predicative stop-loss orders seen at: 1.2247).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).