Sellers are beginning to show some interest now within weekly supply at 1.76297-1.67702. On this timeframe, the nearest logical weekly demand area is seen below at 1.66917-1.67939. If price does indeed reach this far, it would definitely be worth watching lower-timeframe price action for an entry long here.
The current wave of selling interest does not exactly resemble enthusiasm on the at the moment. Agreed, price has declined, but it is now seen reacting at a minor daily S/R flip level at 1.70597. If price does break below here, a decline will likely be seen towards the next daily S/R flip level below at 1.69712. Conversely, if the buyers take over form where we are currently trading at, we could very well begin seeing the start of a rally up to a beautiful daily supply at 1.76297-1.73024 which is located deep within the aforementioned weekly supply area mentioned above.
Price did indeed drop down to the round number 1.71000 where the buyers appeared to have put up a good fight, but the sellers were clearly too strong for them on this occasion. Price as expected shot straight down to the 4hr S/R flip area at 1.70617-1.70459 where a reaction was indeed seen. We however did not expect the sellers to push price so deep past the aforementioned 4hr S/R flip area in the process. With this area pretty much consumed of demand, we could very well see a decline in value towards the round number below at 1.70000 where a rally in higher prices will likely be seen.
Therefore, with the showing price trading at a minor daily S/R flip level (levels above); a small decline on the 4hr TF down to the round number 1.70000 would appear as a nice fakeout on the of the aforementioned daily S/R flip level. Of course, this is only one possible scenario, so do take it as such.
Pending/P.A confirmation orders:
• The Pending buy order (Green line) set just above demand (1.70617-1.70459) at 1.70662 has been stopped out.
• New P.A confirmation buy orders (Red line) are seen just above the round number 1.70000 at 1.70058. A P.A confirmation buy order was set here simply because big number levels such as these could very well see a deep test/spike south, hence the need to wait for confirmation here.
• No pending sell orders (Green line) are seen in the current market environment.
• 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: No pending buy orders are seen in the current market environment. P.A.C: 1.70058 (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: 1.71943 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).