ICmarkets

EUR/USD: Technical outlook and review.

FX:EURUSD   Euro Fx/U.S. Dollar
145 5 2
4hr TF

The higher-timeframe picture resembles the following:

• Weekly TF: Price still remains relatively deep within weekly demand at 1.32940-1.34847, and at the time of writing there appears to be little interest seen from the buyers. A break below this area could force prices to test the weekly demand area at 1.31037-1.32262.

• Daily TF: Buyers and sellers remain trapped for the time being between a daily level of interest below at 1.33559, and a daily decision-point area above at 1.34433-1.34202.

Price is really toying with our current long position at 1.33526, as price once again pushed higher hitting the round number 1.34, then dropped back down to the 4hr demand area at 1.33360-1.33619 where price remains trading for the moment.

Something interesting has been spotted with these current price movements, take a look at the green down trend line, yes, we know this highlights the fact that price is trending south, but it also represents what pro money’s likely intentions are for the future. Notice how every time a decline was seen, price then rallied back up to collect sell orders for yet another push to the downside, however clearing out the sell orders also clears the path north for any future buying which is highly likely at the moment, as let’s not forget, price is currently trading within a weekly demand area (levels above), so higher prices are naturally expected. For buying strength to be proved however, we need to see a break above the 4hr decision-point area at 1.34433-1.34305, as this will also mean the daily-decision-point area (levels above) has been consumed also, so we can then expect higher prices at least up to the next fresh supply areas on the respective timeframes (Daily: 1.34760-1.35265, 4hr: 1.34760-1.34943).

Pending/P.A confirmation orders:

• The pending buy order (Green line) set within 4hr demand (1.33360-1.33619) at 1.33526 is now active, Our first take-profit level was hit at 1.34, so do keep an eye on our second and final take-profit level set at 1.34305.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• Pending sell orders (Green line) are seen just below the 4hr 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.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 1.33526 (Active) (SL: 1.33280 TP: 1.34 1.34305). 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). P.A.C: No P.A confirmation sell orders are seen in the current market environment.


Ulisses
2 years ago
Very good analisis. Please, could you just explain to me what is P.A.C?
Thanks.
Reply
ICmarkets PRO Ulisses
2 years ago
Hi, thank you for the kind comment. A P.A.C is a Price Action Confirmation order, we use this type of order when we are unsure of an area. So, for example, price is dropping down towards a 4hr demand area, but this area has seen multiple touches indicating weakness, we would place a P.A.C order just above it, and wait for price to react there, and then consume sellers around an important supply area (in this case). Please do let me know if this is unclear, and I will try to find a different way of explaining it.
+1 Reply
Ulisses ICmarkets
2 years ago
I got it. Thank you for the explanation.
Reply
pezq PRO
2 years ago
I would second that your comments and analysis are very instructive. Thanks very much. Concerning the PAC order, would that be an OCO order dependent on which way the price reacts? Kind Regards to you. Pezq.
Reply
ICmarkets PRO pezq
2 years ago
I do apologize, I just noticed that it is not explained what a P.A.C order is on my postings here, it is here: http://www.icmarkets.com/category/market-analysis/

However, I will briefly go over it for your convenience. A P.A.C order is not really an order per se, it's a level to watch, if price action confirms the level, we can then place a pending buy/sell order (depending on which way you expect the market to move) around the area where you initially placed the P.A.C order.

If this is still confusing, please do take a look at the site link above, or alternatively in a few weeks we will begin producing videos surrounding this analysis.

Regards

icmarkets.
+1 Reply
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