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: Price still remains caught trading between the daily demand area 0.92046-0.92354, and a daily decision-point level at 0.93529. A break above could see prices test daily supply at 0.94729-0.94175, conversely, a break below will likely see a push south towards a daily R/S flip level at 0.91323. Let’s also not forget, if a break below is indeed seen, this would effectively mean that price has broken below the weekly consolidation area (levels above) as well.
The market opened at 0.93066, and a nice-looking formed. Things were looking very good for our long position (0.92417) at that time. A little buying was seen after the pin-bar candle formed, but was short lived as selling interest came into the market at around the 0.93225 level, and slammed prices below the round number 0.93. For anyone who follows our analysis on a regular basis, you may recall we said if a close below the round number 0.93 was seen, we would then think about liquidating our long position, as we have already taken some nice profits from this trade.
With our long position closed now, it is very much a waiting game for us on this pair. Price is now temporarily capped between the round number 0.93, and the 4hr decision-point level below at 0.92384, once a breakout of this area is seen, we will be looking to trade the retest.
Pending/P.A confirmation levels:
• The pending buy order (Green line) set just above the 4hr decision-point level (0.92384) at 0.92417 is now closed with a nice bit of profit locked in.
• No P.A confirmation buy levels (Red line) are seen in the current environment.
• No pending sell orders (Green line) are seen in the current environment.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: No P.A confirmation buy levels seen in the current market environment.
• Areas to watch for sell orders: P.O: No pending sell orders seen in the current market environment. P.A.C: No P.A confirmation sell levels seen in the current market environment.