Daily Timeframe: The shows the market has clearly found support around the 108.421 level. If follow-through buying is seen from here, we may see the current uptrend continuing up to at least the 110.390 level (daily Quasimodo resistance), which would consequently push price extremely deep within the weekly supply area mentioned above. On the other hand, if we see a daily close below the 108.421 level, this will likely attract further selling down to a daily decision-point area at 106.799-107.108, and confirm selling strength from the aforementioned weekly supply area.
4hr Timeframe: Very shortly after the market opened (109.279) a close above the 109.449 level was seen. This move likely signals price will rally up to at least the 110 level, which if you remember is only 39 pips away from the daily Quasimodo (110.390) mentioned above.
The most likely scenario we see playing out before higher prices are seen, is a decline in price (to collect buy orders) down to either the 109 level (active buy orders seen just above at 109.056), or failing that, a push down to a 4hr demand area seen at 108.467-108.775 (active buy orders are likely lurking just above at 108.830).
• Buy orders: 109.056 (Predicative stop-loss orders seen at: 108.799) 108.830 (Predicative stop-loss orders seen at: 108.411).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).