Daily Timeframe: Yesterday saw further buying enter the market which we believe was a result of price consuming selling opposition around a daily swap area seen at 117.22-117.64. Assuming that further buying is seen, there is a good chance that prices will hit a daily supply area coming in at 119.95-119.14 sometime soon.
4hr Timeframe: As we can all see the recent buying has taken out both the 4hr supply area at 117.93-117.69, and the round-number level 118.00. This move consequently forced the market deep within a nice-looking 4hr supply area seen at 118.84-118.52. With both the weekly and showing strength in the market at the moment, we feel that this current 4hr supply area will be consumed, which as a result will likely force the USD north towards a small area of 4hr supply coming in at 119.31-119.12. It would be at this point that we’d begin watching the lower timeframes for selling confirmation around the 119.08 mark. This is an attractive ‘sell zone’ since it’s located just within the aforementioned daily supply area, and as such could provide a nice bounce. The reason this trade requires confirmation is simply because prices are currently seen hovering just above a major weekly swap level (see above) at the moment.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 119.08 (Predicative stop-loss orders seen at: 119.36).