Daily Timeframe: The shows that the market has found support around the 1187.02 mark. Assuming that the buyers keep us this enthusiasm, we can likely expect prices to test the daily decision-point supply area at 1235.51-1222.37 (located just below the weekly swap level mentioned above at 1244.08).
4hr Timeframe: The 4hr timeframe shows that price has recently faked above a nice-looking 4hr supply area coming in at 1207.45-1201.61, no doubt stopping countless traders out (including us).
We believe a decision needs to be made here. If the buyers intend on taking prices higher, then there is very little selling opposition seen until a small 4hr supply area at 1226.52-1220.97 (located just within a daily supply area at 1235.51-1222.37), since all we see to the left is consumed supply – check out the consumption wicks at: 1213.21/1214.88. However, if a fakeout is seen here, then the path south is relatively free down towards 1182.01, as most of the buying opposition has likely already been taken out already around 1191.82.
We are going to be watching current price to see how lower-timeframe price action behaves. If we see a positive set up either long or short, we will not hesitate to take the signal and place our order.
• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).