The higher-timeframe picture resembles the following:
• Weekly timeframe: Price is currently trading within weekly demand at 1.32940-1.34847, and at the time of writing, a little interest is being seen by the sellers, however the buyers have been seen showing the lion’s share, if price is intent in trading higher, the first trouble area for the buyers seen on this timeframe is weekly supply at 1.36995-1.35844.
• Daily timeframe: Selling action has been seen out of the daily decision-point area at 1.34433-1.34202, judging by the looks of things here currently, we may be seeing a touch of the 1.33559 level, which in our opinion is a very important area to watch.
Price has smashed straight through the round number 1.34 leaving the majority of the buyers around this level possibly at a loss, The selling pressure must be relatively strong, as (at the time of writing) price did not even retest the round number after the break.
Things are beginning to get very interesting now, if price continues on south towards the low 1.33774 and breaks it, a highly likely touch of the daily level of interest will be seen at 1.33559 (seen clearer on the ). The reasoning behind this is the green-dashed , this is not to represent a trend, it’s more to show how when the buyers were rallying price, they were spiking south to collect buy orders for the original push up, that’s great, but what they also did was likely clear the path south for any sellers.
Therefore upon a successful break below the low 1.33774, keep an eye on the daily level of interest (level above) which is just below the low marked with an arrow at 1.33658. Regarding all of the above, do remember we are still in heavy weekly demand at 1.32940-1.34847, so do remain aware heavy buyers could in fact still come into the market at any time!
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 the round number1.34 at 1.34048 has been removed since price traded too far below the entry level for the time being.
• 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. Our first and second take-profit levels have both been hit (1.34/1.33846), so do keep an eye on our third and final take-profit level set at 1.33559.
• 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: No P.A confirmation buy orders are seen in the current market environment.
• 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 1.33559). P.A.C: No P.A confirmation sell orders are seen in the current market environment.