Daily Timeframe: The shows that buying and selling is currently taking place in between a weekly swap level mentioned above at 1222.2, and a daily support line extended from the low 1131.4 (07/11/14). A close above here would likely force the market to test a small daily supply area at 1236.6-1227.7. On the other hand, should a close lower be seen, further selling would likely ensue down towards a daily swap level coming in at 1182.0.
4hr Timeframe: The latest coming in from the 4hr timeframe reveals that price has just closed below and retested a minor 4hr swap level seen at 1203.6. This move has very likely opened the gates for prices to challenge the 4hr demand area seen at 1190.0-1197.2 once more.
This 4hr demand area is a significant zone to us since it boasts not only confluence from the daily line (see above), but also, is located just within a weekly demand area mentioned above at 1166.8-1195.0.
Although we missed the first touch seen at this 4hr demand on Tuesday (1195.2), we have no plans on repeating the same mistake twice! If price reaches this area sometime today, our team will be on red alert – watching for lower timeframe buying confirmation around the 1198.1 mark. Assuming that we find an entry here, our first take-profit target will be set around the 1203.6 level. Ultimately though, we would, at that point, be looking for price to close above this level and retest it as support, thus giving us confidence to move our stop-loss order to breakeven.
Current buy/sell orders:
• Buy orders: 1198.1 (Predicative stop-loss orders seen at: 1189.3).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).