Daily Timeframe: Price has successfully broken below a daily decision-point demand area seen at 0.95163-0.95581, which likely indicates that the path south is clear down to at least the daily decision-point demand area at 0.93522-0.93970. Be that as it may, this does not mean we are recommending hitting the sell button just yet! What it does mean however, is we should be patient, as this break below the 0.95163-0.95581 area could very well just be a fakeout into the weekly resistance flip level mentioned above at 0.94546.
4hr Timeframe: The 4hr timeframe shows exactly why we should be patient. At the time of writing, buying interest has been seen out of a 4hr demand area at 0.94587-0.94785, which is an important area in our opinion.
The reason for its importance is simply because a close below this level would likely indicate that the weekly resistance flip level seen at 0.94546 is weakening, and that the break below the daily decision-point area at 0.95163-0.95581 would likely be a continuation move rather than a fakeout.
On the other hand, assuming further buying interest is seen here, and price closes above the 0.95315 level, this would likely imply that the aforementioned weekly resistance flip level is showing strength, and also that the aforementioned daily decision-point area has likely seen a fakeout below.
Therefore, we have decided to sit on our hands regarding this pair and see how price action unfolds for the time being.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).