The higher-timeframe picture resembles the following:
Weekly TF: There is clear buying pressure being seen on this pair, and as a result, price is now trading around the weekly decision-point area once more at 0.80328-0.79780. If selling interest comes into the market here, the first trouble area we see is around the weekly demand area at 0.76931-0.78623.
Daily TF: Fresh buyers are being seen on the around the 0.78905 level, which in all honesty was unexpected, since we believed price would challenge the daily demand area below at 0.78117-0.78533. On this timeframe we see very little stopping price trading all the way back up to daily supply at 0.80328-0.80024.
The buying seen on the higher timeframes looks awesome on the 4hr timeframe! Price has broken through the 4hr decision-point level at 0.79472 with relative ease and trading right up to (and breaking above) the 4hr supply area at 0.79778-0.79664. The wick/spike marked with a blue arrow at 0.79846 has possibly filled the majority of the sellers’ stops around this 4hr supply area (and also trapped breakout buyers in the process). This wick likely signals that the path north is clear up to at least the huge round number 0.8. However, we are drawn to a fantastic-looking 4hr supply area just above it at 0.80151-0.80085 which could prove to be a nice area to fakeout to above the aforementioned round number.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment.
• No P.A confirmation buy levels (Red line) are seen are seen in the current market environment.
• New Pending sell orders (Green line) are seen just below 4hr supply (0.80151-0.80085) at 0.80068. The reason we have set a pending sell order here is because we believe if/when price reaches the round number 0.8, a fakeout (spike) may be seen up to this 4hr supply area making it a great place to look for a first-time reaction.
• The P.A confirmation sell level (Red line) set just below the 4hr decision-point level (0.79472) at 0.79456 has been removed, since price traded too far above the entry level, thus making any sell trade invalid.
• 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 are seen in the current market environment.
• Areas to watch for sell orders: P.O: 0.80068 SL: 0.80158 TP: Dependent on how price approaches). P.A.C: No P.A confirmation sell levels are seen in the current market environment.