Daily Timeframe: This week started off with price forming a pin-bar candle within a major daily supply area at 0.97505-0.96339. Tuesday showed us that the bears were in control and the candle looked as though it was proven. However, yesterday saw active buying pushing price back up to the daily supply area which very likely caused panic for the majority of the pin-bar sellers, which has no doubt stopped countless traders out at breakeven. Let’s see what we can find on the 4hr timeframe.
4hr Timeframe: A potential selling opportunity may be forming now. Check out how price consumed buyers around both the 0.96110 level marked in green, and also the psychological-number 0.96, and has now returned to the origin of the downswing (0.96439/0.96644). We feel there is a good chance to enter short here, since we also have the added confirmation of the two selling wicks seen at 0.96585/0.96606. Our first target would be set around 0.95569, just above a 4hr resistance flip level coming in at 0.95540. We also mustn't forget that this trade has extra weight due to price currently trading within a weekly supply area (0.98378-0.95895) at the moment.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: Anywhere between 0.96439 and 0.96644 (Predicative stop-loss orders seen at: 0.96668).