Daily Timeframe: Yesterday’s trading action saw minor selling interest from within a daily decision-point supply area seen at 1245.8-1233.1. This area remains a key obstacle to a move towards the weekly swap level mentioned above at 1251.5.
4hr Timeframe: Following the rally seen from the 4hr swing low at 1217.3, the buyers and sellers are now currently battling for position just below a small 4hr supply area at 1238.6-1235.2. Selling from here could potentially cause unnecessary stress, as it would likely put you up against both higher-timeframe buying opposition from the weekly swap level seen at 1222.2, and also near-term 4hr support seen just below at 1227.7.
From where we’re standing, traders have two choices here, well three if you include being flat. The first option is that one could sell from the 4hr supply area and target both the near-term 4hr support and higher-timeframe weekly swap level. If you consider this viable, we would strongly advise waiting for some sort of confirmation signal before risking any money here. The second option is to buy from the 4hr . Now, we agree that you would in effect be trading in line with the here, but entering long into both 4hr and daily supply (see above) could cause serious drawdown before price moves in your favor, if at all.
With the above in mind, our team has weighed up the current options and has humbly decided to sit this one out until further development is seen.
Current buy/sell orders:
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).