In our previous report (http://blog.icmarkets.com/thursday-25th-february-daily-technical-outlook-and-review/), we discussed two possible trade scenarios: One was to wait for price to close below psychological support 111.00 and look to trade the retest of this number down to weekly support at 110.09. The second was to wait for a close above and retest the 112.00 figure for a buy trade up to H4 supply at 113.16-113.51, followed closely by the aforementioned weekly resistance. We are kicking ourselves today as the latter played out perfectly with nice confirmation of buying strength seen on the M15 chart, and we missed it! Well done to any of our readers who took advantage of this move!
Once, or indeed if, price reaches the aforementioned H4 today, we will not be looking to short as the market may try to tag in offers at the weekly mentioned above. Instead, we’ll be watching for price to slightly close above this H4 area and retest it as demand. This would effectively be our cue to begin watching the lower timeframe action for an intraday buy up to the 114.00 region (see blue arrows).