The higher-timeframe picture resembles the following:
• Weekly TF: Selling pressure is still being seen from weekly supply at 1.76297-1.67702. The weekly demand area at 1.66917-1.67939 is where current trading is taking place; a push below here could force prices to test the weekly demand area below at 1.64589-1.66339.
• Daily TF: Current trading action is very deep within daily demand at 1.67367-1.68440, which is neatly located around the weekly demand area (levels above). If we see a break below this daily demand area, prices would likely be forced to test the daily demand area below at 1.65492-1.66044, since most of the demand/buyers appear to have already have likely been consumed by two prominent tails/spikes (1.66559/1.66978). However, the break south has yet to be seen, so higher prices could still happen, the first trouble area for the buyers in our opinion is around the daily R/S flip level at 1.68963.
The market opened at 1.67763, and since then not much action has been seen, this should be expected really considering Mondays are notoriously slow sessions. Buyers and sellers for the time being are trading between a 4hr demand area at 1.67389-1.67561, and the round number above at 1.68.
Take a quick look at the small green on the chart, as price is rallying, spikes/tails south are being seen which are likely consuming the buyers, thus clearing the path for a move south possibly later today. A reaction off of the round number (level above) could be all the sellers need to push prices down to the aforementioned 4hr demand area.
This 4hr demand area is the last remaining fresh demand within daily demand, and potentially weekly demand as well (for levels see above). If we see a reaction here, this could indicate pro money activity, as they love to get the best prices, and the best prices are usually deep within areas of interest such as this, however, if we see a break below this area, tighten up your seat belts because a bumpy ride south may well be ahead!
Take a look at the price action to the far left under the aforementioned 4hr demand area, we can see literally no fresh demand levels until way down below around the daily demand area at 1.65492-1.66044. We’ll be watching price action very carefully around the 4hr demand area, as it could prove very important for future direction.
Pending/P.A confirmation orders:
• Pending buy orders (Green line) are seen just above 4hr demand (1.67389-1.67561) at 1.67601. The reason for setting a pending buy order here is because if price reaches this far south, we are then located 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 a 4hr decision-point area (1.68919-1.68789) at 1.68747, the reason for this type of order to be set is simply because the sellers have confirmed this area by consuming the buyers around (what was at the time) the 4hr demand area at 1.68013-1.68585, thus a pending sell order could be set knowing the path south is clear for the moment.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 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: 1.68747 (SL: 1.69064 TP: Dependent on price approach). P.A.C: No P.A confirmation sell orders are seen in the current market environment.