Daily view: From the daily scale, we can see that prices closed the week just above a daily extended from the low 115.55, which 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: Friday’s sell off that smashed through the 119.00 handle has helped complete what we believe the technical community labels a . This, in our opinion could not have formed in a better place. The yellow zone depicts 4hr support – 0.786 XA retracement, an equivalent pattern with beautiful market symmetry and a BC projection which complements the zone at 1.618. This supportive base, coupled with the fact that price is trading not only within weekly demand, but also around a daily support with a converging (see above) makes this an incredibly confluent area of support in which to look for buy trades today/this week. If one is considering entering at market here, stops would be best placed below the X point 118.52. However, for us personally, lower timeframe confirming price action will still be required here. The reasons for why are simply because we have potential round-number resistance looming just above at 119.00. Therefore, waiting for the lower timeframes to confirm that buying interest exists here is, in our opinion, the best path to take.
Current buy/sell orders:
• Buy orders: 118.87/118.52 (Predicative stop-loss orders seen at: Ideally below 118.52).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).