Daily Timeframe: The shows yesterday was a clear ‘selling day’, with little buying interest being seen. If price continues south down towards the 108.421 level, things will get very interesting indeed! A break below this level would 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. On the other hand, it would be a nightmare if prices held above the 108.421 level for traders who have sold at the weekly supply area, as this likely suggests buying strength within higher-timeframe supply - not a great combination!
4hr Timeframe: The 110 level has proved worthy; there was clearly some serious interest from the big boys around this area, which possibly indicates unfilled sell orders still remain.
A shorting opportunity may be occurring on the 4hr timeframe. The recent sell off saw numerous decision-points consumed. This suggests to us further selling may well be seen. Assuming price rallies back up to the 4hr supply area coming in at 110.081-109.712, active sell orders are very likely lurking just below here at 109.695.
We agree this trade would be going against the trend, but when price is located in a monster weekly supply area such as the one mentioned above, these types of trades in our opinion are high probability.
• Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
• Sell orders: 109.695 (Predicative stop-loss orders seen at: 110.157).