Daily Timeframe: The reason for the buying interest likely stems from a small daily demand area coming in at 117.225-117.873. If further buying is seen, there is very little in our opinion stopping prices from rallying back up towards the daily supply area seen at 122.610-121.540 (encapsulates the aforementioned weekly Quasimodo ).
4hr Timeframe: As we can all see, price did indeed react bullishly around the 4hr Quasimodo at 117.344. We do hope some of our readers caught part of this move; unfortunately, we could not find any corresponding lower-timeframe confirmation to allow us to ride this wave.
The recent rally north saw price close above 119 into a 4hr supply area coming in at 119.905-119.170, where we believe most of the supply has been consumed. Considering where we are located in the bigger picture (see above), our bias for the time being is long. And as such, we’ll be watching a combined 4hr demand/round number area at 117.432-118.212/118 for lower-timeframe confirmed entries north with an overall take-profit target set at 120.591, just below a 4hr supply area seen at 120.992-120.668. However, in the event we do find an entry long here, we’re not expecting price to shoot straight to the target, road bumps will no doubt cause retracements, as per the red arrows on the chart.
Current buy/sell levels:
• Buy orders: Will be watching for lower-timeframe confirmation between 117.432/118.212 (Predicative stop-loss orders seen at: dependent on where one sees confirmation).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).