Interest Rate News on Wednesday created a sudden market gap in price to the downside drawing on sell-side liquidity. Price should close higher on Friday to fill the void left by institutional selling on Wednesday.
Strong institutional selling on November 9th left a Liquidity void on that day and a Fair Value gap over the past few weeks. This is essentially a price gap as this area of price is void of buyers. Institutional traders may fill this area of price to attract buyers long-term and is thus a draw on buy-side liquidity. This is where we as traders take profit...
Based on the weekly trend, we can expect upward bullish momentum. Using the fibonnachi tool, we can identify possible targets that the algorithm may hit for good take profits tomorrow. Price is expected to retrace to yesterday's bullish order block in NY session at the opening bell on Thursday and then distribute upward to the 1.5 deviation at 12750.4 . ...
Price will continue the upward trend towards Buy-Side Liquidity. This is the direction of institutional order flow and also the position of large pools of liquidity. This liquidity exists in the form of buy stops for breakout traders and also stop losses for short position traders. High probability of long setups forming toward this liquidity pool.
Price will continue its upward trend toward buy-side liquidity as shown on the chart. This is the clear direction of institutional order flow. Continue looking for long setups until price reaches the liquidity pool.
Due to the current strength of the Australian Dollar, we can expect continued bearish momentum toward equal lows at 1.59481. This is where the stop losses of long position traders are and the institutional traders may target this liquidity pool at 1.59481.
Further take profit areas are: 1.56787 and another equal low at 1.53323
Retail buyers may believe that...
