Our suggestions: Ok, on the weekly chart we know that price currently occupies a coming in at 1307.4-1280.0. Additionally, we know that the above said daily sits within the top edge of this weekly . Following on from this, we can see from the H4 chart that the highway north is relatively ‘resistance free’ up to that said daily resistance. On account of these points, our team is now watching the daily at 1301.5 very carefully, as between here and the H4 61.8% Fib resistance at 1304.5 (green line), a bounce is likely to take place.
Of course, it is down to the individual trader how he/she wishes to enter short here. Considering ourselves to be relatively conservative we’re opting to wait for a H4 close to form, prior to pulling the trigger.
Levels to watch/live orders:
• Buys: Flat (stop loss: N/A).
• Sells: 1304.5-1301.5 (H4 close required, stop loss: ideally beyond the trigger candle).