The higher picture resembles the following:
• The is showing price consolidating just above weekly demand at 0.85664-0.88124
• Daily supply at 0.90372-0.90042 has seen a lot of action over the past few weeks with no break north seen yet. Price is currently capped between the daily just mentioned above and the daily S/R flip level below at 0.88608.
The 4hr timeframe shows the sellers were unable (at the time of writing) to close below the low 0.89245, by all means they did attempt to though, take a look at all those beautiful tails/spikes!
If we see a break of this low soon, it may very well clear the path for lower prices down to at least the round number 0.89000. However as a quick reminder we did actually see price spike above the high 0.89557 before which means some or even most of the sellers there are likely consumed, again clearing the path higher up until at least the round number 0.90000. The reason the path is likely clear north is because the majority of supply is likely consumed (notice the wicks within the green arc, these likely resemble possible supply consumption as price was dropping). As of now, we are left to watch price action unfold to give us an answer on possible direction.
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 the low 0.88546 at 0.88586. The reason that a P.A confirmation buy order was set here rather than a pending buy order was simply because there is no logical area for a stop loss, and the low (level above) will be likely prone to deep tests, or worse, a positive break below, hence the need to wait for confirmation.
• No pending sell orders (Green line) are seen in the current market environment.
• The P.A confirmation sell order (Red line) set just below the high 0.89557 at 0.89514 is now active. To confirm this level the sellers must consume some of the buyers around the low marked with a horizontal level at 0.89245, this will allow a pending sell order to be set awaiting a possible retracement.
• Areas to watch for buy orders: P.O: There are currently no pending buy orders seen within the current market environment. P.A.C: 0.88586 (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: There are currently no pending sell orders seen within the current market environment. P.A.C (Active-awaiting confirmation) 0.89514 (SL: likely to be set at 0.89624 TP: Dependent on approaching price action after the level has been confirmed).