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 the 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.
There were clearly some very active sellers around the 4hr supply area at 0.80264-0.80133, which has slammed price back down deep into a 4hr S/D flip area at 0.79792-0.79689.
With the daily timeframe suggesting prices may decline further before a rally higher is seen, we have to be prepared for a break below the aforementioned 4hr S/D flip area, which will likely push price down to around the 4hr demand level at 0.79189, where history has proven this to be a valid level to buy off of. However, the same still stands as the last analysis, only with a different high, if we see a rally higher from here, and we see a break above the high 0.80266 marked with a red circle, then there’s very little stopping price from hitting the 4hr supply area at 0.80619-0.80409. Here’s why, The wick/high seen at 0.80351 marked with a green arrow likely cleared most of the remaining sellers around the supply area marked with a black circle at 0.80309, meaning there is very little to stop price hitting the aforementioned 4hr supply area, where we currently have a pending sell order ready and waiting at 0.80387.
Pending/P.A confirmation levels:
• No pending buy orders (Green line) are seen in the current market environment. • New P.A confirmation buy levels (Red line) are seen just above a 4hr demand level (0.79189) at 0.79215. The reason for setting a P.A confirmation buy level, and not a pending buy order is simply because this level has seen a touch already indicating some of the buyers may have been consumed, thus weakening this area, hence the need for confirmation on this one.
• 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: 0.79215 (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.