Stepping across to the H4 chart, the H4 Quasimodo at 1217.5 continued to hold firm yesterday, forcing bullion down to lows of 1206.5. The next area of interest on this scale falls in at 1198.4-1203.8: a H4 , boasting confluence from a H4 support drawn from the low 1187.7 and a H4 Fib 61.8% support at 1204.8.
Our suggestions: While the current H4 demand base will likely produce a bounce today, it may not be anything to get excited about. Let’s not forget where price is coming from on the bigger picture! The daily candle that formed within daily supply could, in our opinion, be enough to wipe out this area and push price lower to the aforementioned daily . If one still considers the H4 demand base to be valid, we would strongly recommend waiting for a reasonably sized H4 bull candle to form, before pressing the buy button!