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. Buying interest is currently being seen out of this weekly demand area, if a push much higher from here happens, 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 down 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). A bit of buying interest has been seen out of this daily demand area; however it appears to be short lived, as active sellers seem to be coming into the market around the daily R/S flip level at 1.68963. If we see a break below the aforementioned daily demand area, this could indicate potential weakness from the weekly demand area (levels above).
Recent trading action gave the impression (in our opinion) that price was going to break below the 4hr demand area at 1.68013-1.68585; price has done the exact opposite. The buyers have been on full force pushing prices up to a small 4hr decision-point area at 1.68919-1.68789 where active selling is being seen at the moment.
Price action is currently trapped on the 4hr timeframe between the aforementioned small 4hr decision-point area and 4hr demand area. A break above the 4hr decision-point area and round number 1.69 would be a good sign buying strength is coming into the market, and conversely, a break below the 4hr demand area and round number 1.68 would likely indicate weakness in not only the daily demand area at 1.67367-1.68440 but also potentially the weekly demand area at 1.66917-1.67939 as well.
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.
• The P.A confirmation sell order (Red line) set just below a 4hr decision-point area (1.68919-1.68789) at 1.68747 is now active. Sellers will need to confirm this area by consuming some or most of the buyers around the 4hr demand area below at 1.68013-1.68585 for a pending sell order to be set.
• 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 (Active-awaiting confirmation) (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).