By contrast, the daily picture shows that price is now within touching distance of hitting demand seen at 16889-17056. This could, as it ties in nicely with the minor weekly swap (support) level mentioned above, potentially hold this market higher this week.
Moving down into the pits of the H4 timeframe, one can see prices heavily sold off from the underside of swap resistance at 17440 going into the close 17093. To our way of seeing things right now, as long as the sellers hold the market below the recently broken weekly swap (support) level, then price, at least on the H4 timeframe, appears free to continue selling off until reaching demand coming in at 16889-16976.
With all the above taken on board, battle lines going into today’s sessions and possibly into the week are as follows:
• We’re looking at the H4 demand drawn from 16889-16976. Not only is this beast surrounded by a daily demand at 16889-17056, it’s also positioned around the minor weekly swap (support) barrier at 16935. Dependent on the approach and the time of day, we would likely consider a market entry here.
• Should price retest the recently broken weekly level 17135 as resistance along with a lower timeframe sell setup, we’d jump in short here and look to ride the wave down to our buy zone (see above).