Following the rebound from the underside of a weekly trendline support (now acting resistance) taken from the low 0.9078, further downside was seen in this market last week. As a result, price drove deeper into weekly demand at 0.9476-0.9608, and closed to-the-pip at a weekly Quasimodo support line coming in at 0.9526, so do keep a tab on this area this week as buyers could potentially make an appearance from here! Scrolling a page lower to the daily chart, we can also see that the weekly Quasimodo line fuses beautifully with a daily AB=CD bullish completion point, thus adding weight to a reversal being seen from here.
Looking at Friday’s movement on the H4 chart, one can see that price made a quick run to highs of 0.9582 during the London morning session, before closing below mid-level support at 0.9550 and reaching lows of 0.9525 on the day. We feel based on where price is positioned on the higher-timeframe picture (see above) that a pending buy order can be placed just above H4 demand drawn from 0.9493-0.9517 at 0.9519, with a stop below at 0.9490. However, seeing as how this pair is in a downtrend at the moment, we will, should our buy order be triggered today, look to take partial profits at 0.9550 and begin reducing some of our risk. Ultimately, nevertheless, we’re looking to trail this position up to at least the 0.9660 level – daily resistance.
Levels to watch/live orders:
• Buys: 0.9519 Pending buy order (Stop loss: 0.9490).
• Sells: Flat (Stop loss: N/A).
Looking at Friday’s movement on the H4 chart, one can see that price made a quick run to highs of 0.9582 during the London morning session, before closing below mid-level support at 0.9550 and reaching lows of 0.9525 on the day. We feel based on where price is positioned on the higher-timeframe picture (see above) that a pending buy order can be placed just above H4 demand drawn from 0.9493-0.9517 at 0.9519, with a stop below at 0.9490. However, seeing as how this pair is in a downtrend at the moment, we will, should our buy order be triggered today, look to take partial profits at 0.9550 and begin reducing some of our risk. Ultimately, nevertheless, we’re looking to trail this position up to at least the 0.9660 level – daily resistance.
Levels to watch/live orders:
• Buys: 0.9519 Pending buy order (Stop loss: 0.9490).
• Sells: Flat (Stop loss: N/A).
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