ICmarkets

AUD/USD: We are expecting higher prices out of 4hr demand

FX:AUDUSD   Australian Dollar/U.S. Dollar
25 0 2
4hr TF.

The higher-timeframe picture resembles the following:

• Weekly timeframe: The weekly timeframe is still depicting consolidating price action with the upper limits being seen at 0.94600 and the lower at 0.92046. Price is seen trading predominantly around the aforementioned upper limits at the moment.

• Daily timeframe: Buyers and sellers have been trading within a medium-term range on the daily timeframe with daily supply being seen above at 0.95425-0.94852 and a low below at 0.93208.

It was reported in the last analysis that if a break above the round number 0.94 was seen, price would essentially be free to hit the 4hr decision-point level above at 0.94408 since supply was likely consumed already by the two wicks marked with arrows.

Clearly there was supply still left before the aforementioned 4hr decision-point level, and price has now slammed back down into 4hr demand at 0.93795-0.93945. All is not lost though, this small rally we have just seen may have cleared out the remaining sell orders left between where price is trading now up to the 4hr decision-point level at 0.94408.

Pending/P.A confirmation orders:

• The pending buy order (Green line) set just above a decision point area (0.93795-0.93945) at 0.93967 is now active, so do keep an eye out for a first take-profit level to be hit at 0.94408.
• 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: 0.93967 (Active) (SL: 0.93773 TP: 0.94408 0.95000). 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.
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