The higher-timeframe picture resembles the following:
• Weekly timeframe: A decline in value has been seen over the past few weeks within weekly supply at 1.76297-1.67702, which has seen price trade into weekly demand at 1.66917-1.67939. If a push much higher is seen from here, this could indicate potential weakness within the weekly supply area. However, a break below this 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.
• Daily timeframe: Price has traded right into a daily demand area at 1.67367-1.68440 which is neatly located around the weekly demand area (levels above). 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 (levels above). So, it may be worth keeping a close eye on price action around here during the week.
The market opened at 1.68234, with no real action being seen thus far, this was to be expected as Monday’s sessions are notoriously slow.
With the higher-timeframe picture still in mind (see above), the buyers and sellers are seen battling it out deep within 4hr demand at 1.68013-1.68585 which is neatly located around both the daily demand area at 1.67367-1.68440 and also around the base (top) of weekly demand at 1.66917-1.67939. So, a break below the aforementioned 4hr demand area and the round number 1.68 lurking below would see price trading deeper into the higher-timeframe demand areas mentioned above, and likely see prices testing the 4hr demand area seen lower down at 1.67389-1.67561.
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.
• 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 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.
• 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).