Weekly Timeframe: Current trading action shows that the USD has seen a decline in value, consequently forcing price to trade just above a major weekly swap level coming in at 115.50.
Daily Timeframe: The buyers and sellers are currently seen battling for position within a daily demand area at 115.55-116.38 (located just above the aforementioned weekly swap level). In the event that fresh buyers enter the market here, we see very little stopping price from rallying up to a minor daily swap area coming in at 117.22-117.64.
4hr Timeframe: The 4hr timeframe reveals that price is currently trading relatively deep within a 4hr demand area at 115.55-116.06 (located deep within the aforementioned daily demand area).
Under normal circumstances, we would usually enter the market here without the need for confirmation. The reason we say ‘usually’ is simply because this area of demand, even though it is beautifully located in the higher-timeframe picture, has been visited (14/01/15) already, meaning demand i.e. buy orders may have already been weakened. So as things stand, we are going to be watching the lower timeframe action today within this area of 4hr demand for a confirmed entry long. Assuming we find one, we’ll be looking to target 117.00, and potentially, given enough time and effort from the buyers, the 4hr supply area above at 117.93-117.69.
Current buy/sell levels:
• Buy orders: watching for lower-timeframe confirmation within 4hr demand at 115.55-116.06 (Predicative stop-loss orders seen at: dependent on where one confirms this level).
• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
Comments
SetagayaGirl
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The obvious place to look, of course. But that was a quick event reversal, and if we get down that low again I would expect price action to be a bit different. Fact is, there have been numerous 70-80 pip rallies off of recent swing lows, and they've all been stuffed, and stuffed rather quickly. So far, today, we've had TWO 70+ pip rallies off of lows. It remains to be seen, as US futures have not pointed a clear weekend direction yet. I like long. But I'm no longer convinced the Kuroda promise can be trusted, since the market has just trashed the Jordan promise. Don't think no one is watching. If the market decides this pair is headed lower, lower it will go.