ICmarkets

EUR/USD Technical outlook and review.

FX:EURUSD   Euro Fx/U.S. Dollar
41 0 2
Daily TF.

A nice bit of bearish action is being seen on the daily timeframe , as price is pushed further south likely heading towards daily demand at 1.34760-1.35265. A reaction may well be seen here, but a break below could also happen due to this area seeing multiple touches already which likely weakened demand (little buy orders seen).

4hr TF.

The sellers have closed below the low 1.35746 with a near full-bodied bearish candle; price then was seen hesitating for a while where buying pressure must have been weak at this point because a retest of the aforementioned low was not even seen. This could have been pro money taking partial profits there and accumulating their position for the next move down.

Price is trading around the 4hr demand area at 1.35018-1.35375 at the moment. This area does appear to be rather weak, take a look at the two arrows at the bottom of the chart, notice how deep these two tails have already penetrated the area, it is very likely there is not going to be many buy orders left in here.

As a quick reminder, the green arc pattern represents possible pro money action in that while they were rallying price north, they were spiking south consuming demand/buyers thus clearing the path for possible selling activity. The low 1.35746 seemed to be the last obvious place where buyers may have been lurking, and that has been consumed. So, taking all of the above into consideration, a full break of the aforementioned 4hr demand area may likely be seen sometime soon.

Pending/P.A confirmation orders:

• No pending buy orders (Green line) are seen in the current market environment.
• The P.A confirmation buy order (Red line) set just above demand (1.35018-1.35375) at 1.35417 is now active. Buyers will have to PROVE this area by consuming the majority of the sell orders around the high marked with an arrow at 1.35714 in order for us to consider setting a pending buy order.

• Pending sell orders (Green line) are seen just below the decision-point supply area (1.36632-1.36485) at 1.36416. The reasoning behind placing a pending sell order here is due to the simple fact we have seen buyers consumed lower around the lows 1.36013, thus making it a low-risk high-probability trade.
• P.A confirmation sell orders (Red line) are seen just below supply (1.37224-1.37028) at 1.36894. A P.A.C order was selected here due to the reaction seen at the aforementioned supply area proving its validity. However, pro money may well decide to push price higher into this supply area if/when price returns to it, thus making it a risky trade for a stop above the high 1.36995 which could be very easily be stopped out if a pending sell order was set, hence the need to wait for confirmation.

• Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: 1.35417 (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: 1.36416 (SL: 1.36584 TP: Dependent on price action approach). P.A.C: 1.36894 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).
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