Weekly view: For the past month or so, the buyers and sellers have been seen battling for position within a weekly demand area coming in at 118.22-119.40. Our bias will remain north on this pair as long as price continues to trade above 115.50.
Daily view: From the daily scale, we can see that price is resting on top of a daily trendline extended from the low 115.55, which, as you can probably see, also boasts additional supportive confluence from daily support coming in just below it at 118.62 (located deep within the aforementioned weekly demand area).
4hr view: The price action on the 4hr scale is very interesting. Currently, we’re seeing price retesting an already proven Harmonic bullish Gartley reversal zone marked in yellow at 118.85/118.67. What’s interesting, however, is that a near-perfect Harmonic bullish Butterfly pattern (thick black lines) is also on the brink of completing. With that, one can clearly see that the potential reversal zone for this pattern in green (118.67/118.58) is positioned perfectly around the aforementioned daily support level/trendline, making it an area of extreme confluence in our opinion.
Our team has no plans to enter at either harmonic zone at market prices; we’re going to let price action decide on the best route to take. If we spot confirming price action on the lower timeframes in either reversal area, we’ll confidently enter long. Take-profit targets will be dependent on how price behaves within and on the approach to a zone.