A beautiful full-bodied candle was seen last week within weekly supply at 1.76297-1.67702 which traded right into weekly demand at 1.69917-1.67939. If serious buying is seen here, and a push much higher is seen, this could indicate potential weakness within the weekly supply area. However, a break below the weekly demand area will likely indicate selling strength and we should then at least expect lower prices to around the weekly demand area at 1.64589-1.66339.
Late last week price was seen entering a daily demand area at 1.67367-1.68440 which is neatly located around the weekly demand area. If buying interest is seen from here, the first point of trouble we see is the daily R/S flip level at 1.68963. Conversely if we see a break below this area, this could indicate potential weakness from the weekly demand area (for levels, see above). So, it may be worth keeping a close eye on price action around here this week.
With the higher-timeframe picture still fresh in mind, let’s take a look at the 4hr timeframe. Buyers and sellers are currently seen battling it out within 4hr demand at 1.68013-1.68585, which we mustn't forget is neatly located around the daily demand area at 1.67367-1.68440. Late on Friday last week, the sellers seem to have taken charge as before there was real indecision being seen in the market (spiking both north and south). A break below the aforementioned 4hr demand area and round number 1.68 could see prices trading deeper into higher-timeframe daily demand towards the 4hr demand area below at 1.67389-1.67561 where active buy orders are most likely sitting. However, if buying interest does come into the market early this week from where price is currently seen, the first sign of trouble for the buyers would naturally be the 4hr decision-point area above at 1.68919-1.68789, and a break above here and the round number 1.69 should indicate decent buying strength.
Pending/P.A confirmation orders:
• The pending buy order (Green line) set just above the decision-point area (1.68013-1.68585) at 1.68631 is now active, so do keep an eye on our first take-profit level set at 1.69214.
• New pending buy orders (Green line) are seen just above 4hr demand (1.67367-1.67561) at 1.67601. The reason for setting a pending buy order here is because if price reaches this far south, we are then located very deep within not only weekly demand at 1.69917-1.67939, but also daily demand at 1.67367-1.68440 making it very likely we will see some sort of a reaction north here.
• 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 decision-point area (1.69939-1.69663) at 1.69626. We have set a pending sell order here due this being the area pro money made the push below (what was at the time) 4hr demand at 1.69512-1.69708, so there may very well be unfilled sell orders left there.
• New P.A confirmation sell orders (Red line) are seen just below a 4hr decision-point area (1.68919-1.68789) at 1.68747, our reasoning behind setting an order such as this here is simply because we are currently trading in and around higher-timeframe demand (Weekly: 1.66917-1.67939 Daily: 1.67367-1.68440) at the moment, essentially meaning price could blow straight through this 4hr area with relative ease.
• Areas to watch for buy orders: P.O: 1.68631 (Active) (SL: 1.67932 TP: 1.69214 1.69497) 1.67601 (SL: 1.67314 TP: Dependent on price approach). P.A.C: No P.A confirmation buy orders are seen in the current market environment.
• Areas to watch for sell orders: P.O: 1.69626 (SL: 1.70063 TP: Dependent on price approach). P.A.C: 1.68747 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).