The higher-timeframe picture resembles the following:
• Weekly timeframe: The sellers have begun to show some serious interest within weekly supply at 1.76297-1.67702, could we see a touch of weekly demand below at 1.66917-1.67939 in the next few weeks?
• Daily timeframe: A positive close below the daily S/R flip level at 1.69712 has now been seen, price will now very likely visit the a daily R/S flip level at 1.68963, and if a break south is seen there, a test of the daily demand area at 1.67989-1.67367 could well happen.
A break of the 4hr demand area at 1.69512-1.69708 has been seen as reported may likely happen in the last analysis. Price is relatively clear now to hit at least the round number 1.69 with little to the left that would likely cause any trouble (The tail marked with an arrow represents possible demand/buyer consumption, meaning the path south may be clear below to the aforementioned round number).
The heavy selling being seen in weekly supply (levels above) looks fantastic, and is nowhere near any area we can see that will stop it just yet. Even on the , after the break of the daily R/S flip level at 1.69712 was seen, room to the downside is visible to the next daily R/S flip level at 1.68963 (not meaning to be repetitive here!!!). With this in mind, it would make perfect sense for pro money sellers to break the aforementioned round number (another reason why we only placed a P.A confirmation order here) and push prices even further south down to a 4hr decision-point area at 1.68013-1.68585, which is conveniently located just above daily demand at 1.67989-1.67367, so do keep an eye on this area for a possible reaction in the near-term future. Do remain aware though, before any of the above could happen, pro money may require liquidity, so a possible push up to the 4hr decision-point area at 1.69939-1.69663 may be seen.
Pending/P.A confirmation orders:
• Pending buy orders (Green line) are seen just above the decision-point area (1.68013-1.68585) at 1.68631. Our reasoning behind placing a pending buy order here rather than a P.A confirmation buy order is simply because of this 4hr decision-point area’s location on the higher timeframes (just above daily demand at 1.67989-1.67367).
• P.A confirmation buy orders (Red line) are seen just above the round number 1.69000 at 1.69055. The reasoning behind setting this order is because we have no logical area on this timeframe for a stop-loss, and these areas are prone to some very nasty spikes, hence the need to wait for confirmation.
• Pending sell orders (Green line) are seen just below the round number 1.71000 at 1.70948. We have set a pending sell order here due to the fact we can place our stop just above the high 1.71167.
• New 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 4hr demand at 1.69512-1.69708, so there may very well be unfilled sell order left there.
• The P.A confirmation sell orders (Red line) set just below the round number 1.72 at 1.71943 has been removed since price has dropped too far from the entry level for the time being.
• Areas to watch for buy orders: P.O: 1.68631 (SL: 1.67932 TP: Dependent on price approach). P.A.C: 1.69055 (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: 1.70948 (SL 1.71211 TP: Dependent on price approach) 1.69626 (SL: 1.70063 TP: Dependent on price approach). P.A.C: No P.A confirmation sell orders are seen in the current market environment.