The higher picture resembles the following:
• Buyers are still seen deep within weekly supply territory at 1.76297-1.67702, with a little interest being shown by the sellers at the moment.
• The still shows price is currently trading in no man’s land between daily supply above at 1.76297-1.73024 and daily S/R flip level seen below at 1.69712.
In the last analysis it was reported that for the buyers to reach the round number above at 1.72000, a minor supply area at around the 1.71371 area (circled) would need to be consumed.
Price has yet to see a positive break above this area at the time of writing, and is now seen dropping back towards the round number 1.71000. Take a quick look at the dashed line, notice the wicks? Supply seems to be well and truly consumed around this level, so if the buyers did want to hit the round number above, it would not take very much pressure due to this consumed zone.
So, where is price likely to visit next? The round number 1.71000 appears to be consumed already, ,meaning there are not likely very many buyers left there, so a deeper test may be in order down to the 4hr S/R flip area at 1.70617-1.70459 before a rally higher is seen.
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 (1.70617-1.70459) at 1.70662. A reaction north is likely to be seen here as there is no doubt unfilled buy orders left around this area when pro money made the ‘decision’ to push higher. However deep spikes can occur around flip areas (levels above) such as these, hence the need to wait for confirmation.
• No pending sell orders (Green line) are seen in the current market environment.
• New 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 seen in the current market environment. P.A.C: 1.70662 (likely to be set at 1.70423 TP: Dependent on approaching price action after the level has been confirmed).
• Areas to watch for sell orders: P.O: No pending sell orders 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).