To keep this report as short as possible, we’re going to list our findings in bullet-point form starting with the H4 chart and working up to the weekly:
• On the H4 chart, price is, thanks to the rising H4 mentioned above and the H4 Quasimodo resistance line at 110.38, collectively forming a H4 . Conventional wisdom, as far as we know, states to either buy the break, or conservatively trade the break/retest at the upper boundary of the . Caution is advised here since directly above sits a nice-looking H4 sell zone at 111.00/110.84 zone (round-number 111.00, daily resistance at 110.96 and H4 resistance at 110.84 ).
• Looking over to the , we can see that there’s also a daily resistance formed from the high 114. 44 converging with the above said daily resistance line.
• Weekly price continues to gravitate in the direction of a weekly given at 113.80-111.59.
Our suggestions: As mentioned in the previous report, the 111.00/110.84 H4 zone looks fantastic for sell opportunities. Despite the collection of resistances seen here, however, we would still require lower timeframe confirmation to form before risking capital. The reason being is, as we mentioned above, weekly activity could very well continue north up to the underside of the above said weekly supply – essentially the H4 mid-way resistance 111.50, fifty pips above our sell zone!
Levels to watch/live orders:
• Buys: Flat (Stop loss: N/A).
• Sells: 111.00/110.84 region Tentative – confirmation required (Stop loss: dependent on where one confirms this area).