The higher-timeframe picture resembles the following:
Weekly TF: Prices are stalling after hitting the awesome-looking weekly supply area at 1.10522-1.09996. Considering just the for the moment, we still believe lower prices could be seen, since there’s very little stopping the sellers from challenging the weekly demand area below at 1.05715-1.07008.
Daily TF: The rebound from the daily S/R flip level at 1.08277 extended higher recently, with price seen edging ever so closer to testing the daily supply area above at 1.09967-1.09401, where we very much expect the sellers to show an appearance.
The 4hr timeframe shows the upward momentum could very well continue on this pair. The sellers situated around the 4hr supply area at 1.09073-1.08883, and the round number 1.09 have likely been consumed, meaning the path north may be clear to test at least the 4hr S/R flip level at 1.09311. A break above here would likely force prices to trade up to a nice-looking 4hr supply area at 1.09967-1.09807 (a P.A confirmation sell level is set just below at 1.09777).
However, before higher prices are seen, we can likely expect a correction towards a beautiful-looking fresh 4hr demand area at 1.08553-1.08681, where we have set a pending buy order just above at 1.08715. Ideally though, we would like to see prices hit this 4hr demand area, before hitting the aforementioned 4hr S/R flip level, since we do not want extra selling pressure against us. If our buy order is filled, we will be extra cautious here since we mustn’t forget that we are still trading out of weekly supply at 1.10522-1.09996.
Pending/P.A confirmation levels:
• New pending buy orders (Green line) are seen just above 4hr demand (1.08553-1.08681) at 1.08715. The reason we have set a pending buy order here is because this area is fresh, meaning there are very likely unfilled buy orders sitting within.
• No P.A confirmation buy levels (Red line) are seen in the current market environment.
• Pending sell orders (Green line) are seen just below a 4hr supply area (1.10388-1.10163) at 1.10127. This area remains fresh, and likely contains unfilled sell orders indicating a bounce south at the very least will be seen if/when price reaches this area.
• The P.A confirmation sell level (Red line) set just below 4hr supply (1.09073-1.08883) at 1.08856 has been removed since price traded too far above the entry level.
• P.A confirmation sell levels (Red line) are seen just below 4hr supply (1.09967-1.09807) at 1.09777. The reasoning behind not setting a pending sell order here was simply because price could rally all the way back up to (in our opinion) a beautifully located 4hr supply area at 1.10388-1.10163.
• Areas to watch for buy orders: P.O: 1.08715 (SL: 1.08526 TP: Dependent on how price approaches). P.A.C: No P.A confirmation buy levels seen in the current market environment.
• Areas to watch for sell orders: P.O: 1.10127 (SL: 1.10440 TP: Dependent on how price approaches) P.A.C: 1.09777 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).