On the Daily chart above, as we observed almost throughout the latter part of last month, price is still hovering within the region of the 1.0600 level – a very major support level. Price has broken the previous day low @ 1.0553 (which we’ve highlighted using the lower blue broken line) downward. This shows that the bears are a somewhat ready to push price further downward – at least from a day-trade perspective. However, except for very aggressive traders, the coast is still very unclear as the entire area where price has been dwelling for days, as earlier said, is a very strong support area. Moderately aggressive traders that are prepared to go ahead and place trades might consider reducing their risk.
On the H4 chart above, price has broken the most recent swing low, which also happens to be the previous day low @ 1.0553 (that we’ve highlighted using the blue broken line), downward. That price action automatically shifted our bias in favor of a downward price move. Again, please be very conscious of the fact that price is within a major support area; hence downward pressure might be limited. The white horizontal line @ 1.0634 highlights the most recent swing high, and as long as price stays below it – in the absence of any new and lower swing high – our bearish or downward bias remains intact.However, we still need our Hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our Short positions. Price pattern on the Hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down-trend.
Also, PATIENCE is the key here: we need to patiently wait for the Hourly retracement. It might happen, and it might not.
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