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.
The minor 4hr supply area seen circled at 1.71371 has been well and truly consumed. Notice how easy price sliced through the ‘wicky’ action to the left on the rally up, this was because there was very little supply left there.
If the round number 1.71000 did not appear weak (buyers are possibly consumed here due to the tail marked fakeout) we would have definitely considered entering long here as price could very well rally hard to the round number above at 1.72000.
Still, we are staying with our original hypothesis in the last analysis: ‘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’. The reason being is pro money will likely require liquidity in the form of sell orders to buy into, and with little buyers currently seen here (1.71000), pro money will likely have to trade deeper to allow breakout sellers to follow suit thus once pro money does decide to buy then have the sellers’ orders to use whether these sell orders will be enough to fill their massive quota is anyone’s guess!
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.
• 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).