Now, considering that this temporary range has set itself up within the confines of a daily supply area at 0.9861-0.9775, price will likely breakout south, right? Not necessarily. Check out the , can you see how close price is to connecting with the lower limits of a weekly Bat completion zone at 1.0013-0.9923? With this, price could rally further north before seeing any sort of decent move to the downside. For this reason, our plan of attack today, and possibly for the remainder of the week, will consist of looking for lower timeframe confirmed sell trades within either the 4hr supply area located just above the current at 0.9982-0.9936, or an area of 4hr supply positioned much higher up on the curve at 1.0068-1.0046.
Notice that the closest 4hr is located nicely within our weekly , while the other is positioned just above it within a strong looking daily coming in at 1.0090-1.0008. These two 4hr areas of supply are what we’d consider high-probability turning points in the market.
Levels to watch/ live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 0.9982-0.9936 Tentative – confirmation required (Stop loss: dependent on where one confirms this area since a fakeout could be seen above to parity) 1.0068-1.0046 Tentative – confirmation required (Stop loss: 1.0077).