ICmarkets

EUR/USD Technical weekly outlook and review

FX:EURUSD   Euro Fx/U.S. Dollar
27 0 0
Weekly TF.

The weekly timeframe has not seen much change over the past six weeks as price is still trading within an important weekly demand area at 1.34760-1.36314. The sellers made an attempt at previous weekly lows (1.35844) but were rejected by the buyers which closed price for the week at 1.36064. Taking all of the above into consideration, higher prices are still expected this coming week.

Daily TF.

On the daily timeframe we see a closer view of the price action going on in the aforementioned weekly demand area (see above). Price is currently capped between daily supply at 1.37297-1.36879 and daily demand below at 1.34760-1.35265. Considering our location within the weekly timeframe , we are more than likely going to see a break of the aforementioned daily supply area before we do the daily demand area below.

4hr TF.

The round number 1.36000 did indeed see a test as reported may happen in the last analysis. Friday’s trading sessions remained mainly around this round number no doubt stopping both breakout traders, and possibly most of the traders attempting to buy there also causing a right mess!
The break of the low 1.36013 could be very important as this has opened up a zone likely free of demand/buyers. The red-dashed uptrend line likely resembles pro money consuming demand as they were pushing price higher, hence clearing the way for any possible selling activity down to at least the low 1.35746 which still remains important.
However, if pro money does indeed want to get price down to the low 1.35746, they will very likely need liquidity in the form of sell orders to buy into, where better than the recent decision-point supply area up at 1.36632-1.36485.

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).

• New 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 (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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