Should the H4 127.2% Fib ext. fail to hold ground today, the next downside target on the H4 scale can be seen at 1327.3/1325.9: a 161.8% Fib ext. point/H4 support. The green arrows denote consumption tails, which we believe has likely cleared downside.
Buying from current price is certainly a possibility today, given yesterday’s reaction. However, a better area to buy from, in our view, would be the H4 161.8% Fib ext. point at 1327.3, since it is located just ahead of H4 support at 1325.9 and positioned within the lower limits of the current daily demand. Therefore, traders are able to place stops beyond this daily zone!