Daily Timeframe: The shows that after coming within a few points of hitting a daily supply area seen at 1235.51-1222.37 (located just below the weekly swap level mentioned above at 1244.08), prices stalled for three consecutive trading days, but eventually sold off on Friday down to 1185.91, just above a major daily support swap level coming in at 1182.01. Let’s take a look on the 4hr timeframe to see what we can find.
4hr Timeframe: The selloff seen on Friday was very likely fuelled by the positive NFP numbers, which forced price to close price below the low 1191.81. This has likely consumed the majority of buyers here, and consequently opened the gates for prices to challenge 1182.01, a daily support swap level.
We currently have our eye on selling the NFF-formed supply area at 1207.45-1201.61 today, since we now have potential short-term direction down towards 1182.01 (as per the blue arrows). This 4hr supply area likely has unfilled sell orders remaining due to well-funded traders scrambling to get the best prices around NFP time, which we intend to take full advantage of. A sell limit order has been set at 1200.73, with a stop placed above at 1208.25.
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: 1200.73 (Predicative stop-loss orders seen at: 1208.25).