Over the last week, a beautiful-looking has formed within weekly demand at 1.32940-1.34847, as the market closed near its weekly highs at 1.34268. Does this mean buying will be seen this week? Not necessarily, some pin-bar enthusiasts would disagree (and they could well be right on this occasion), we however would rather look at the lower-timeframe price action to see where fresh buy orders likely lay that could essentially help facilitate a push higher.
A small daily decision-point area at 1.34433-1.34202 was formed early last week, and as a result price is now capped between this area and a daily level of interest below at 1.33559. Friday saw a sterling effort from the buyers who pushed price up to the aforementioned daily decision-point area, which has likely filled most of the sell orders located there. A push above this area would be a healthy sign of buying strength from the weekly demand area mentioned above, likewise a reaction south would likely see a push back down to the daily level of interest, and break below this level could see prices plummeting much further south, but we will save this for when or if price completes this move.
The last analysis stated that our medium-term bias was still short, and if we see a positive daily close below the daily level of interest at 1.33559 (see above), this will remain. However we cannot ignore what is forming right in front of our faces.
Price is now currently trading around a small 4hr decision-point area at 1.34433-1.34305, which is conveniently located within the daily decision-point area at 1.34433-1.34202.
So essentially, we are waiting for a decision to be made on this pair, a break above the aforementioned 4hr decision-point area, would likely mean a test of the 4hr D/S flip area at 1.34760-1.34943 would likely be seen (this area is also neatly located within a daily D/S flip area at 1.34760-1.35265), and also confirm buying strength from the higher-timeframe areas mentioned above. Conversely, a healthy reaction seen here could push prices down to the round number 1.34, a break below there could very likely seal the deal for a move down to the aforementioned daily level of interest (see above), so do be on the lookout for this.
Pending/P.A confirmation orders:
• No pending buy orders (Green line) are seen in the current market environment.
• New P.A confirmation buy orders (Red line) are seen just above the round number1.34 at 1.34048.The reason for placing a P.A confirmation buy order here is simply because there is no logical area that is not too far away for a stop-loss order. A reaction could be seen here due to where price is presently located on the higher timeframes (Weekly demand: 1.32940-1.34847).
• Pending sell orders (Green line) are seen just below the D/S flip area (1.34760-1.34943) at 1.34753.The reasoning behind setting a pending sell order here was because this is the area we believe on this timeframe pro money sellers made the decision to push prices south into (what was at the time) 4hr demand at 1.33984-1.34404, with the possibility of unfilled sell orders still waiting there.
• The pending sell order (Green line) set just below a decision-point area (1.34428-1.34305) at 1.34266 is now active, so do keep an eye on our first take-profit level set at the round number 1.34.
• No P.A confirmation sell orders (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: 1.34048 (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: 1.34753 (SL: 1.35031 TP: Dependent on price approach) 1.34266 (Active) (SL: 1.34459 TP: 1.34 1.33846). P.A.C: No P.A confirmation sell orders are seen in the current market environment.