Weekly Timeframe: The rebound from the weekly demand area at 1156.70-1194.45 extended higher last week up to a weekly support flip level coming in at 1244.08. At this point in time, there appears to be very little selling interest seen around this level. Does this mean higher prices will follow? Let’s see what we can find on the lower timeframes.
Daily Timeframe: The daily timeframe shows that price appears to be standing strong on a small daily resistance flip level seen at 1235.54, which as a result saw price close above the 1244.08 weekly level. Assuming the buyers can hold out above this level, it is very possible we may see prices rally up to a daily supply area at 1277.11-1260.46.
4hr Timeframe: With selling weakness being shown on both the weekly and daily timeframes at the moment, we are certainly not interested in buying this market for the time being.
We feel there is a good chance that the 4hr supply area seen at 1250.85-1243.69 will likely be consumed either today or tomorrow at the latest. This would immediately see price trading around a minor fresh 4hr supply area at 1257.83-1253.54 (tentative sell orders are seen just below at 1252.70). It is here a decision needs to be made.
In the event price consumes this minor area of supply, we can likely assume a rally higher will be seen up to at least a 4hr supply area coming in at 1273.57-1260.70 (located relatively deep within the aforementioned daily supply area). This move would also likely confirm buying strength from the weekly demand area mentioned above at 1156.70-1194.45.
However, if selling interest comes into the market either around the current 4hr supply area (1250.85-1243.69), or the 4hr supply area just above (1257.83-1253.54), this could potentially fuel a decline in value down towards a fresh 4hr demand area seen at 1221.78-1227.37 (active buy orders are seen just above at 1228.35) .
Buy/sell levels:
• Buy orders: 1228.35 (Predicative stop-loss orders seen at: 1220.96).
• Sell orders: 1252.70 (Predicative stop-loss orders seen at: 1259.22).
Daily Timeframe: The daily timeframe shows that price appears to be standing strong on a small daily resistance flip level seen at 1235.54, which as a result saw price close above the 1244.08 weekly level. Assuming the buyers can hold out above this level, it is very possible we may see prices rally up to a daily supply area at 1277.11-1260.46.
4hr Timeframe: With selling weakness being shown on both the weekly and daily timeframes at the moment, we are certainly not interested in buying this market for the time being.
We feel there is a good chance that the 4hr supply area seen at 1250.85-1243.69 will likely be consumed either today or tomorrow at the latest. This would immediately see price trading around a minor fresh 4hr supply area at 1257.83-1253.54 (tentative sell orders are seen just below at 1252.70). It is here a decision needs to be made.
In the event price consumes this minor area of supply, we can likely assume a rally higher will be seen up to at least a 4hr supply area coming in at 1273.57-1260.70 (located relatively deep within the aforementioned daily supply area). This move would also likely confirm buying strength from the weekly demand area mentioned above at 1156.70-1194.45.
However, if selling interest comes into the market either around the current 4hr supply area (1250.85-1243.69), or the 4hr supply area just above (1257.83-1253.54), this could potentially fuel a decline in value down towards a fresh 4hr demand area seen at 1221.78-1227.37 (active buy orders are seen just above at 1228.35) .
Buy/sell levels:
• Buy orders: 1228.35 (Predicative stop-loss orders seen at: 1220.96).
• Sell orders: 1252.70 (Predicative stop-loss orders seen at: 1259.22).
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.