Daily Timeframe: Further buying is clearly evident on the , as price appears to be edging closer pip-by-pip towards the 110.390 level (Quasimodo resistance), which if hit, would consequently see price trading very deep within the weekly supply area at 110.652-108.123. 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 ultimately confirm selling strength from the current aforementioned weekly supply area.
4hr Timeframe: The 4hr timeframe shows that price continues to make higher highs and higher lows within the weekly supply area mentioned above – not a great sign for anyone who has sold at this area!
It is very likely to 110 level will see some action very soon, which if you remember is only 39 pips away from the daily Quasimodo (110.390) mentioned above. However, before higher prices are seen, traders would do well to prepare for a potential retracement (to collect buy orders) down to either the 4hr decision-point level at 109.300 (active buy orders likely set just above at 109.363), or failing that , a push down to the 109 level (active buy orders likely set just above at 109.056).
• Buy orders: 109.056 (Predicative stop-loss orders seen at: 108.799) 109.363 (Predicative stop-loss orders seen at: 109.069).
• Sell orders: N/A (Predicative stop-loss orders seen at: N/A).