The higher-timeframe picture resembles the following:
• Weekly timeframe: The sellers have begun to show some serious interest within weekly supply at 1.76297-1.67702, could we see a touch of weekly demand below at 1.66917-1.67939 in the next few weeks?
• Daily timeframe: Price is currently seen trading around a daily S/R flip level at 1.69712; no decision has been made to trade north or south that we can see at the moment. Price remains capped between the aforementioned daily S/R flip level and a daily S/R flip level just above at 1.70597, if we do see a break below (1.69712), price will likely visit the daily demand area at 1.67989-1.67367.
The market opened at 1.69766, and very similar to the EUR/USD pair above, little price action has been seen. This is to be expected though, as Monday’s are notoriously slow trading sessions.
The last analysis reported that we are favoring a break of the 4hr demand area at 1.69512-1.69708 which would in all likelihood push prices down to at least the round number 1.69. Our reasoning behind thinking this is due to the heavy selling currently being seen in weekly supply (see above for the levels) at the moment. The tail marked with an arrow represents possible demand/buyer consumption, meaning the path south may be clear below to the aforementioned round number. In addition to this, it would make perfect sense for pro money sellers to break the aforementioned round number (another reason why we only placed a P.A confirmation order here) and push prices even further south down to a 4hr decision-point area at 1.68013-1.68585, which is conveniently located just above daily demand at 1.67989-1.67367, so do keep an eye on this area for a possible reaction in the near-term future.
Pending/P.A confirmation orders:
• New pending buy orders (Green line) are seen just above the decision-point area (1.68013-1.68585) at 1.68631. Our reasoning behind placing a pending buy order here rather than a P.A confirmation buy order is simply because of this 4hr decision-point area’s location on the higher timeframes (just above daily demand at 1.67989-1.67367).
• P.A confirmation buy orders (Red line) are seen just above the round number 1.69000 at 1.69055. The reasoning behind setting this order is because we have no logical area on this timeframe for a stop-loss.
• Pending sell orders (Green line) are seen just below the round number 1.71000 at 1.70948. We have set a pending sell order here due to the fact we can place our stop just above the high 1.71167.
• P.A confirmation sell orders (Red line) are seen just below the round number 1.72000 at 1.71943. We have placed a P.A confirmation sell order here simply because these psychological levels are prone to deep tests/spikes, so sometimes it is better to wait for that all important confirmation.
• Areas to watch for buy orders: P.O: 1.68631 (SL: 1.67932 TP: Dependent on price approach). P.A.C: 1.69055 (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: 1.70948 (SL 1.71211 TP: Dependent on price approach). P.A.C: 1.71943 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).