Daily view: The buyers finally gave in yesterday as price crashed through the daily taken from the low 0.8299. As per this timeframe, we see very little stopping price from continuing down towards the daily demand area at 0.9077-0.9147 (located just above the aforementioned weekly swap area).
4hr view: The recent fall on this pair forced price to break below the 4hr consolidation area between 0.9406-0.9367 and 0.9232-0.9266. This, as you can see resulted in price colliding with a 4hr demand area at 0.9164-0.9217, which sits a little above the aforementioned daily . We agree that this current 4hr is fresh, and may see a bounce, but we’re quite confident that it will be taken out later on today/ tomorrow. The reason for why simply comes from the following:
1. Little to no support seen on the higher timeframe picture until price reaches the daily demand area at 0.9077-0.9147.
2. A 4hr Bat reversal zone seen in green at 0.9162-0.9131 is positioned just below the current 4hr , which if you look over to the , you’ll see is located just within the aforementioned daily demand area.
Therefore, since the current 4hr is positioned a little above the daily demand area, we can likely expect a fakeout below here into the aforementioned 4hr reversal zone, which is where we intend to begin looking for buy trades.
In addition to the above, we’d also consider a short position should price retest the recently broken 4hr demand area at 0.9232-0.9266. Obviously the target for this trade would be around the upper limit of the 4hr reversal zone.
Levels to watch/ live orders:
• Buys: 0.9162-0.9131 [Tentative – confirmation required) (Stop loss: 0.9126).
• Sells: 0.9232-0.9266 (Stop loss: 0.9271).