The higher-timeframe picture resembles the following:
• Weekly TF: There is clear selling pressure from the major weekly supply area at 1.76297-1.67702, as price has smashed through the weekly demand area at 1.66917-1.67939 with little trouble, and is now currently seen trading quite deep within the weekly demand area below at 1.64589-1.66339. Is there any chance higher prices will be seen from this weekly demand area?
• Daily TF: Any buyers who attempted to trade the daily demand area at 1.65492-1.66044 have now likely been forced to cover their positions as a break below has been seen. The path south is very likely clear down to the daily demand area at 1.64589-1.64949, nonetheless, we are fully prepared for price to retrace up to at least the daily supply area at 1.67364-1.67105 before the aforementioned daily demand area is hit.
Technically, price has not changed much, so here is a quick reminder of what we are looking at on this pair:
With most, if not all the buyers consumed around the aforementioned 4hr demand area, the path south is now likely free down to at least the round number 1.65, but more importantly a 4hr decision-point level which is lurking just below at 1.64895 (a pending buy order is set just above at 1.64944) which is located deep within weekly demand at 1.64589-1.66339, and also just within a daily demand area at 1.64589-1.64949.
A reaction has been recently seen around the round number 1.66, if we see a break below the low marked with a blue arrow at 1.65345, we will then be looking for a short-term sell around the round number level just mentioned, if, and we must emphasize the word ‘if’ here, we do not hit the round number below at 1.65 first. This is only a short-term opportunity, and we are fully aware of where price is currently located within the higher timeframe picture, so we should remain extra cautious with trades like this.
Pending orders/P.A confirmation levels:
• New pending buy orders (Green line) are seen just above a 4hr decision-point level (1.64895) at 1.64944. The main reason we have gone with a pending buy order on this one is simply because we are currently located around a nice-looking weekly demand area at 1.64589-1.66339, and that this 4hr level remains untouched for the time being.
• No P.A confirmation buy levels (Red line) are seen in the current market environment.
• No pending sell orders (Green line) are seen in the current market environment.
• No P.A confirmation sell levels (Red line) are seen in the current market environment.
• Areas to watch for buy orders: P.O: 1.64944 SL: 1.64497 TP: Dependent on how price approaches) P.A.C: No P.A confirmation buy levels are seen in the current market environment.
• Areas to watch for sell orders: P.O: No pending sell orders are seen in the current market environment. P.A.C: No P.A confirmation sell levels are seen in the current market environment.