AUD/USD Possible drop in price to be seen down to the 4hr demand

FX:AUDUSD   Australian Dollar / U.S. Dollar
112 0 0
4hr TF.

The higher-timeframe picture resembles the following:

• The weekly timeframe is still depicting consolidating price action with the upper limits being seen at 0.94600 and the lower at 0.92046.

• Buyers and sellers have been trading within a small range on the daily timeframe , daily supply being seen above at 0.95425-0.94852 and a low below at 0.93208. Once we see a break of either of these areas, we will likely have more idea on possible short-term direction.

At this point in time, price remains capped by the round number 0.94000 and 4hr demand below at 0.93208-0.93417. It was expected that price may decline as far as the 0.93348-0.93500 area, as we can all see this has yet to happen. Temporary 4hr support has formed at 0.93598 which pushed price up to the round number 0.94000, and at the time of writing seems to interest the sellers.

The circled wick at 0.94096 previously pushed above the round number 0.94000 which likely consumed most of the sellers and breakout buyers with it, so effectively price is clear up to the 4hr decision-point level at 0.94408 (reported in the last analysis). Focusing our attention on to the temporary 4hr support level that has just formed (level above), this could very well be a ‘dummy’ 4hr support level . Imagine for a minute how many buyers would likely see this buying interest and believe this would be a good place to buy especially on the lower timeframes. Now think how pro money is likely thinking regarding this. If millions of traders are buying there, do they want to be buying with them? Not a chance! They want their stops as this is liquidity for them, and where will the stops be normally set at? Just under this support level . If we see heavy selling sometime soon past this level into the 0.93348 -0.93500 area, be prepared for a nice bullish reaction which could essentially rally up to the 4hr decision-point level at 0.94408, what great R:R that trade would be!

Pending/P.A confirmation orders:

• Pending buy orders (Green line) are seen just above demand (0.93208-0.93417) at 0.93512. The reason a pending buy order is valid here is because we have seen the buyers possibly consume most of the sellers around the round number 0.94000, thus clearing the way north. A retracement is likely to be seen beforehand though to around the 0.93500-0.93348 area, which is just above the aforementioned demand zone .
• P.A confirmation buy orders (Red line) are seen just above the decision point level (0.92566-0.92736) at 0.92775. The reason for placing a P.A confirmation buy order here rather than pending buy order is simply because we were trading just above a daily demand ‘buy zone’ at 0.92046-0.92354, meaning pro money could very well just ignore this level completely and trade deeper into the aforementioned daily demand area, so, confirmation is the order of the day!

• Pending sell orders (Green line) are seen just below supply (0.95425-0.95096) at 0.95052. A pending sell order is placed here due to this being an area where pro money was interested in before; see how close price came to the supply area? (Levels above), this indicates possible strong supply (selling pressure), so the next time price visits we can expect some sort of reaction.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 0.93512 (SL: 0.93175 TP: Dependent on price approach). P.A.C: 0.92775 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

• Areas to watch for sell orders: P.O: 0.95052 (SL: 0.95467 TP: Depending on price approach) P.A.C: No P.A confirmation sell orders seen in the current market environment.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out