Daily Timeframe: Yesterday’s daily candle saw price close above the 1.2662 high, which, as we mentioned yesterday, would likely clear the path north for the market to rally higher and test the aforementioned weekly Quasimodo once again.
4hr Timeframe: From the 4hr timeframe, we can see that price has closed above 4hr supply at 1.2662-1.2616, and is now trading a stone’s throw away from the 1.2700 handle.
As mentioned in the previous analysis, we were not looking to buy the break up to 1.2700, or even sell at this round number. Instead, we were (and still are) looking to sell any fakeout above 1.2700 into 4hr supply at 1.2771-1.2736 (located just below the weekly Quasimodo at 1.2765).
Taking all of the above into account, our team has set a pending sell order at 1.2727 (just below the aforementioned 4hr supply area) in an attempt to try and catch price at its extreme (if a fakeout occurs that is).
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1.2727 (Predicative stop-loss orders seen at: 1.2775).