The higher-timeframe picture resembles the following:
Weekly TF: Price is still frustratingly trading within a weekly consolidation area with the upper limits seen at 0.94600, and the lower at 0.92046, with no signs of a break happening just yet.
Daily TF: Buyers and sellers are currently seen battling it out around the upper limits of the medium-term daily range (0.92046-0.92354/0.93529) at 0.93529. If this level gives way, then a test of daily supply at 0.94729-0.94175 is highly likely.
This pair is moving beautifully at present on the 4hr timeframe. The market opened (0.93241) lower than Friday’s close at 0.93329, and also closed below the important low marked with a green arrow at 0.93279 at the same time, potentially clearing the path south down to at least the 4hr decision-point level at 0.93053.
We have now placed a pending sell order just below the 4hr supply area (0.93866-0.93728) at 0.93629 in an attempt to catch price before it likely drops to the aforementioned 4hr decision-point level which would essentially be our first take-profit target.
If no retracement is seen back up to where we have our pending sell order set (level above), we’ll be watching two areas of demand for a reaction: 0.93053 (P.A confirmation level is set just above at 0.93076), 0.92875 (pending buy order is set just above at 0.92807).
Pending/P.A confirmation levels:
• Pending buy orders (Green line) are seen just above a 4hr decision-point level (0.92785) at 0.92807. We have placed a pending buy order here because this level remains untouched, and Is effectively the overall origin of the rally higher, making this level high probability for a first-time reaction.
• P.A confirmation buy levels (Red line) are seen just above a 4hr decision-point level (0.93053) at 0.93076. The reason for not setting a pending buy order here is simply because we believe pro money may push below this level to the overall origin of the move up (4hr decision-point level at 0.92785).
• New pending sell orders (Green line) are seen just below 4hr supply (0.93866-0.93728) at 0.93629. The reason for placing a pending sell order here is simply because the sellers confirmed this area by consuming the majority of the buyers around the low marked with a green arrow at 0.93279 (which was a requirement to allow a pending sell order to be set), which in turn potentially cleared the path south to a 4hr decision-point level at 0.93053.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 0.92807 SL: 0.92661 TP: Dependent on how price approaches) P.A.C: 0.93076 (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: 0.93629 SL: 0.93766 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels are seen in the current market environment.