The higher picture resembles the following: • Buyers and sellers still remain trading within weekly demand at 1.34760-1.36314.
• Trading remains capped between daily supply at 1.37297-1.36879 and daily demand below at 1.34760-1.35265.
On the 4hr timeframe the sellers pushed a little deeper into the support (which was a prior decision point level) at 1.36076 nearly touching base with the round number directly below at 1.36000. An advance up to the decision point (supply) at 1.36632-1.36485 has recently been seen as reported may happen in the last analysis if indeed the buyers did confirm the aforementioned support. The reaction seen at the decision point supply area (levels above) was nearly to-the-pip with the sellers showing little sign of stopping just yet, as they are hammering price back down to the support level mentioned above. A deeper test of the round number 1.36000 below is likely to be seen, how deep this test is, is very hard to determine at the moment. Take a quick look at the red-dashed uptrend line; this possibly resembles consumed demand here, so effectively a deep test could be seen all the way down to the low 1.35746. Price now remains capped between the decision point supply area (levels above) and the low 1.35746. A break of either one of these areas will likely give us potential setups to consider. If price however would have positively broken the aforementioned decision point supply area, likely buys would be around support at 1.36076/1.36000 area.
Pending/P.A confirmation orders:
• No pending buy orders (Green line) are seen in the current market environment. • P.A confirmation buy orders (Red line) are seen just above demand (1.35018-1.35375) at 1.35417. The reason behind us placing a P.A confirmation buy order here, rather than a pending buy order is because the aforementioned demand area appears weak as deep spikes have been seen recently (marked with two arrows).
• No pending sell orders (Green line) are seen in the current market environment. • 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 (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: No pending sell orders are seen in the current market environment. 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).
Comments
MarshallFX_
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What does the semi-circle represent?
Thanks
ICmarkets
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Hi MarshallFX,
The semi-circle at the bottom represents possible consumed demand, take a look at the tails below it, notice how as price was rallying, pro money was dropping price consuming buy orders, thus clearing the way for the sellers, so if price ever gets into this zone, there is very little stopping it from dropping hard.
Thanks