Branching lower to the , demand at 0.9851-0.9926 has so far done a pretty good job of holding this pair higher. Although we have not seen any significant gains from this zone yet, Friday’s candle printed an inverted pin-bar which in itself is a reversal signal.
Thanks to an NFP-induced spike higher on the H4 chart topping out at 1.0052, and no follow-through buying seen (despite U.S. employment figures coming in positive), we now have a potential bull pattern forming. Not only this, but this pattern’s completion point fuses together beautifully with both support at 0.9857 and a 78.6 Fibonacci level coming in at 0.9861. When coupled together with support being seen on both the weekly and daily timeframes right now (see above), we have ourselves one heck of a buy zone to watch this week.
As long as the formation remains symmetrical we will enter with a market order at 0.9857, ideally placing our stop below the daily support at 0.9822 (we’d be looking at 0.9783). Our reason for why comes from this daily sitting just below current daily demand, making this hurdle a tempting barrier for well-funded traders to fake into past this demand.
Should the trade from 0.9857 come to fruition, TP 1 would be set at 0.9966 and the second at 1.0024 (based on the 38.2/61.8% Fib levels – Scott Carney trade management rules).
Levels to watch/live orders:
• Buys: 0.9857 Market order (Stop loss: 0.9783).
• Sells: Flat (Stop loss: N/A).