Weekly levels to watch this week fall in at: 1205.6-1181.2/1157.4/1138.3/1098.6-1121.7.
Daily view: Last week’s descent took out the swap demand (now supply) area at 1169.8-1154.7 with relative ease, and ended the week with price slam dunking itself into a strong-looking demand at 1136.5-1145.0. Considering there is a minor weekly support (1138.3) lurking within this zone, there is a chance we may see prices advance from here up to at least to 1154.7, the underside of the aforementioned swap supply area this week (notice that the base of this area is positioned very close to the weekly swap level at 1157.4, so be extra cautious around this area!).
A breakdown below the current demand on the other hand, would likely stimulate further downside towards Quasimodo support coming in at 1127.7.
Daily levels to watch this week fall in at: 1169.8-1154.7/ 1136.5-1145.0/1127.7.
4hr view: A quick recap of Friday’s movement shows price did indeed continue to fall and connect with demand at 1136.5-1140.7. For those who read Friday’s report (http://blog.icmarkets.com/friday-30th-october-daily-technical-outlook-and-review/), you may recall that we placed a pending buy order at 1141.4 just above the aforementioned demand which was filled just before the American open. The reason for having the confidence to place such an order on a Friday came from this area being located deep within daily demand mentioned above at 1136.5-1145.0, and also additional support seen from the 61.8% Fibonacci level at 1137.7.
Thankfully, the open 1141.9 saw very little change to the structure of this market. Given that the current demand area boasts higher timeframe confluence, we’re ultimately targeting the supply seen at 1149.9-1146.4 as our immediate profit target, followed closely by the swap seen above it at 1151.7-1154.7. At this point, price will be trading close to not only the weekly swap (resistance) level at 1157.4, but also the swap from the drawn at 1169.8-1154.7. Therefore, most of our position will be liquidated before reaching this point.
Levels to watch/ live orders:
• Buys: 1141.4 LIVE (Stop loss: 1135.3).
• Sells: Flat (Stop loss: N/A).