In light of the above, what’s the vibe like on the higher timeframe picture? Weekly action continues to hold firm above demand coming in at 1026.5-1054.8 (merges with the lower limit of a long-term pattern from the low 1180.1). Should this continue, the next upside target in the firing range can be seen at 1098.6-1121.7 – a weekly swap (supply) zone. Scrolling down to the daily picture, however, the recent surge of buying broke above swap resistance (now support) at 1071.2, and is currently trading relatively close to a swap at 1084.5.
With this in mind, battle lines going into today’s sessions are as follows:
• The daily swap (support) level at 1071.2. Should price break below the current H4 swap demand at 1077.4-1076.2, this barrier will likely be the next objective to reach. Furthermore, given the position of price on the (see above) right now, we would consider this a valid platform in which to look for (confirmed) buy entries from.
• A break above the current H4 could potentially give traders the chance to trade any retest seen at this barrier, targeting the daily swap (resistance) level at 1084.5 (confirmation is a must here for us).
Due to the rebound from weekly demand (see above), our team are happy to stick with the above levels for now. Traders may want to bear in mind that trading conditions will likely be thin going forward, unwarranted and sudden moves could be seen so remain vigilant at all times.
Levels to watch/ live orders:
• Buys: 1071.2 Tentative – confirmation required (Stop loss: dependent on where one confirms this level). Watch for offers to be consumed around the H4 and look to trade the retest of this barrier thereafter (confirmation required).
• Sells: Flat (Stop loss: N/A).