4hr TF
The higher-timeframe picture resembles the following:
• Weekly TF: A small spike above the weekly decision-point area has been seen at 0.80328-0.79780, this spike above has likely cleared some of the sellers out indicating the path north to around weekly supply above at 0.81397-0.80805 is relatively free.
• Daily TF: A spike (0.80351) above daily supply at 0.80328-0.80024 has been seen, this spike has likely stopped out a lot of sellers attempting to fade the area. With these sellers consumed, price is very likely free to move up to the next area of interest around a daily S/R flip level at 0.80809. However, before this happens do be prepared for decline in value back down to daily demand at 0.78862-0.79206 at least, since pro money may not have the required liquidity (sell orders for their buys) for a push further up just yet.
The market opened relatively low compared to Friday’s close (0.80196) at 0.79952 just below the big figure number 0.8 where price has overall remained trading up to now.
Since price has traded quite deeply below the aforementioned round number it is very likely that some, or indeed most of the buyers are now filled. What this also means is if there are not enough buy orders around this area, which for the moment looks to be this way, we could see a sharp decline down to the 4hr S/D flip area at 0.79792-0.79689 where active unfilled buy orders are possibly present.
So, as was mentioned in the last analysis, most of the sellers are consumed around the 4hr supply area above at 0.80264-0.80133, which means price is likely free to hit 4hr supply above at 0.80619-0.80409. however, for pro money to make this happen, they need sell orders to buy into (the sellers’ stops from around 4hr supply at 0.80264-0.80133 are now buy orders, pro money cannot use them to buy into! A decline in value may well be seen to entice more sell orders into the market for pro money to use as liquidity, the areas we are watching closely for price to decline to are the round number 0.8 which is where price is currently trading at now, and the 4hr S/D flip area below at 0.79792-0.79689.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment.
• The P.A confirmation buy level (Red line) set just above the round number 0.8 at 0.80017 is now active and awaiting confirmation. For this level to be confirmed, buyers must close the gap above, we would then consider setting a pending buy order.
• Pending sell orders (Green line) are seen just below 4hr supply (0.80619-0.80409) at 0.80387. The reasoning for placing a pending sell order here is simply because the momentum from the supply base was very good, and this area remains fresh.
• 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: 0.80017(Active-awaiting confirmation) (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: 0.80387 (SL: 0.80648 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels are seen in the current market environment.
The higher-timeframe picture resembles the following:
• Weekly TF: A small spike above the weekly decision-point area has been seen at 0.80328-0.79780, this spike above has likely cleared some of the sellers out indicating the path north to around weekly supply above at 0.81397-0.80805 is relatively free.
• Daily TF: A spike (0.80351) above daily supply at 0.80328-0.80024 has been seen, this spike has likely stopped out a lot of sellers attempting to fade the area. With these sellers consumed, price is very likely free to move up to the next area of interest around a daily S/R flip level at 0.80809. However, before this happens do be prepared for decline in value back down to daily demand at 0.78862-0.79206 at least, since pro money may not have the required liquidity (sell orders for their buys) for a push further up just yet.
The market opened relatively low compared to Friday’s close (0.80196) at 0.79952 just below the big figure number 0.8 where price has overall remained trading up to now.
Since price has traded quite deeply below the aforementioned round number it is very likely that some, or indeed most of the buyers are now filled. What this also means is if there are not enough buy orders around this area, which for the moment looks to be this way, we could see a sharp decline down to the 4hr S/D flip area at 0.79792-0.79689 where active unfilled buy orders are possibly present.
So, as was mentioned in the last analysis, most of the sellers are consumed around the 4hr supply area above at 0.80264-0.80133, which means price is likely free to hit 4hr supply above at 0.80619-0.80409. however, for pro money to make this happen, they need sell orders to buy into (the sellers’ stops from around 4hr supply at 0.80264-0.80133 are now buy orders, pro money cannot use them to buy into! A decline in value may well be seen to entice more sell orders into the market for pro money to use as liquidity, the areas we are watching closely for price to decline to are the round number 0.8 which is where price is currently trading at now, and the 4hr S/D flip area below at 0.79792-0.79689.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment.
• The P.A confirmation buy level (Red line) set just above the round number 0.8 at 0.80017 is now active and awaiting confirmation. For this level to be confirmed, buyers must close the gap above, we would then consider setting a pending buy order.
• Pending sell orders (Green line) are seen just below 4hr supply (0.80619-0.80409) at 0.80387. The reasoning for placing a pending sell order here is simply because the momentum from the supply base was very good, and this area remains fresh.
• 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: 0.80017(Active-awaiting confirmation) (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: 0.80387 (SL: 0.80648 TP: Dependent on how price approaches) P.A.C: No P.A confirmation sell levels are seen in the current market environment.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.