After a brief spell beneath daily demand at 1.2654-1.2734, the bulls kicked into action yesterday and ended the day on a somewhat positive note. Be that as it may, as the weekly candles clearly point out, the next area of support does not come into view until we reach 1.2538, thus the odds of further selling being seen this week, in our opinion, is relatively high.
Recently however, the H4 timeframe shows price bounced from 1.27, following a move up from the mid-level support base at 1.2650. We believe that should the current H4 candle close as is, this could be a reasonable location to sell from. Why we believe this to be the case is as follows:
• Daily buyers are likely weakened within the current demand due to the recent breach.
• Weekly price shows little support on the horizon.
• The next downside target on the H4 timeframe, apart from 1.2650, would be the 1.26 handle which is closely positioned to a daily Quasimodo support at 1.2592 (the next downside target beyond the current daily demand).
Our suggestions: A full-bodied H4 bear candle printed off of 1.27 would, in our view, be enough to validate a short entry in this market, with an overall take-profit target set at 1.26.
Data points to consider: No high-impacting events on the docket today.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Sell on the close of the current H4 candle should it close at its lows (stop loss: 1.2703).
Recently however, the H4 timeframe shows price bounced from 1.27, following a move up from the mid-level support base at 1.2650. We believe that should the current H4 candle close as is, this could be a reasonable location to sell from. Why we believe this to be the case is as follows:
• Daily buyers are likely weakened within the current demand due to the recent breach.
• Weekly price shows little support on the horizon.
• The next downside target on the H4 timeframe, apart from 1.2650, would be the 1.26 handle which is closely positioned to a daily Quasimodo support at 1.2592 (the next downside target beyond the current daily demand).
Our suggestions: A full-bodied H4 bear candle printed off of 1.27 would, in our view, be enough to validate a short entry in this market, with an overall take-profit target set at 1.26.
Data points to consider: No high-impacting events on the docket today.
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: Sell on the close of the current H4 candle should it close at its lows (stop loss: 1.2703).
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.