Daily Timeframe: The on the hand reveals that for prices to continue rallying north, selling opposition will need to be consumed within a daily supply area coming in at 119.196-118.041. Assuming that the sellers are indeed consumed here, a move higher will likely follow towards a daily supply area at 122.610-121.540 (encapsulates the aforementioned weekly Quasimodo ).
4hr Timeframe: A breakout north above a small 4hr swap zone seen at 117.432-117.804 recently took place, and forced the market above 118 into a 4hr supply area at 118.966-118.458.
Trading short from here is not something we would be comfortable doing for two reasons:
1. Price is trading off of a major weekly swap level at the moment (see above).
2. Risk/reward considerations argue entering short with prices so close to potential support at 0.81.
A break above this 4hr supply area would likely clear the path north for prices to challenge at least the huge psychological level 120, and given enough time, the 4hr supply area seen above it at 120.992-120.668. The reason we believe prices could move so high is because of the (possible) consumed supply/sell orders seen to the left marked with a pink trendline, check out the supply consumption wicks seen at 118.966/119.046/119.546.
Current buy/sell levels:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).