The higher-timeframe picture resembles the following:
- Weekly TF: Two weeks ago a spike/wick was seen just above the weekly decision-point area at 0.80328-0.79780, indicating that some of the sellers around this area have been consumed, which also likely means price is now free to hit the weekly supply area above at 0.81397-0.80809.
- Daily TF: The same spike/wick seen on the weekly timeframe, is exactly the same on this timeframe (above daily supply at 0.80328-0.80024), meaning the path north is likely clear now up to the daily S/R flip level at 0.80809 (the lower base of the weekly timeframe supply area – see above), however before price can be pushed higher, pro money will need sell orders to buy into, and at the moment this does not seem to be the case. A decline in value may well be seen down to the next fresh daily demand area at 0.78117-0.78533 which is nicely located within the weekly demand area at 0.76931-0.78623.
There were clearly active sellers around the minor 4hr supply area at 0.79661-0.79586, which pushed price down to the 0.79429 level. This level was formed by the huge bullish bar seen on 13/08/14, for price to move this fast and this high, there were very likely unfilled buy orders left there from pro money, and those left-over buy orders are very likely filled now, as the buyers were seen pushing off of this level back up to the aforementioned 4hr supply area, where once again the sellers are showing interest.
If this selling continues, we very much expect price to break lower than the 0.79429 level, and to at least hit the 4hr decision-point level at 0.79189 (a P.A confirmation buy level is set just above at 0.79215). Nonetheless, what really takes our fancy is the 4hr demand area just below this level at 0.79037-0.79139 (pending buy order set just above at 0.79155) since from this area, the buyers consumed sellers not only around the high 0.79385, but also the high 0.79795 (marked with arrows) making this area a one to watch. However, if the buyers are intent on trading higher from here and break above the minor 4hr supply area at 0.79661-0.79586, they will as a consequence be immediately trading within the next 4hr supply area above at 0.79778-0.79664 (stacked supply). If the buyers break above this area, things will begin to get interesting, the gap will likely get filled, and maybe then trade up to a sexy-looking 4hr supply area at 0.80151-0.80085, the round number 0.8 below will likely be faked past in order to reach true supply, so be aware of this if anyone is thinking of shorting this round number if/when price reaches this level.
Pending/P.A confirmation levels:
- Pending buy orders (Green line) are seen just above 4hr demand (0.79037-0.79139) at 0.79155. The reason we have placed a pending buy order here is simply because the buyers consumed sellers not only around the high 0.79385, but also the high 0.79795 (marked with arrows) making this area a juicy one indeed!
- P.A confirmation buy levels (Red line) are seen just above a 4hr decision-point level (0.79189) at 0.79215. The reason for setting a P.A confirmation buy level, and not a pending buy order is simply because this level has seen a touch already indicating some of the buyers may have been consumed, thus weakening this area, hence the need for confirmation on this one.
- No Pending sell orders (Green line) are seen are seen in the current market environment.
- No P.A confirmation sell levels (Red line) are seen in the current market environment.
Active sellers seem to be once again situated around a 4hr minor supply area at 0.79661-0.79586, If the sellers outweigh the buyers here, the path south looks relatively clear down to at least the 4hr decision-point level at 0.79189 (a P.A confirmation buy level is set just above at 0.79215), but what really takes our fancy is the 4hr demand area below at 0.79037-0.79139 (pending buy order is set just above at 0.79155) since from this area, the buyers consumed sellers not only around the high 0.79385, but also the high 0.79795 (marked with arrows).
- Areas to watch for buy orders: P.O: 0.79155 SL: 0.78953 TP: Dependent on how price approaches).P.A.C: 0.79215 (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:No pending sell orders are seen in the current market environment.P.A.C:No P.A confirmation sell levels are seen in the current market environment.