Daily Timeframe: Yesterday saw a seriously day, as the buyers pushed price 135 pips higher within a major daily supply area coming in at 0.97505-0.96339 (located within the aforementioned weekly supply area). It will be interesting to see what we can find on the 4hr timeframe.
4hr Timeframe: We have to be honest here; we thought that price would decline further than 0.96022 from 0.96606, we were expecting at least 0.95540, maybe a little too ambitious here! Anyone who got long around the round-number level 0.96 will likely have a big smile on their face right now, fantastic risk to reward on that trade, well done.
Price is currently trading within a 4hr supply area seen at 0.97505-0.97153, located very deep within the aforementioned daily supply area. Risk/reward considerations argue against shorting this market for the time being, since price is too close to potential support seen around 0.97. We would however become interested sellers if price were to successfully consume some or most of the buyers around the 0.97 level, as this would likely imply the market could potentially drop down to at least 0.96569, a minor 4hr resistance flip level.
With no confirmed direction seen on this pair, we have decided to remain flat for the time being. However, if a short-term sell opportunity presents itself post NFP, we will gladly take advantage of it.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).