EURUSD Daily Technical Outlook and Review. Wednesday 18th June
The high needed to be consumed for the demand area (levels above) to be confirmed. Buyers have proved their strength around this level against any selling opposition, for that reason, a pending buy order has now been set in place of the confirmation order originally placed at 1.35378.
If price decides to rally from where it is currently trading at to the round number 1.36000, then we will have to rethink our strategy as that is our first take profit level (see below) from demand just below (levels above).
EURUSD 4hr Chart (click to enlarge)
Pending/P.A confirmation orders:
- Pending buy orders (Green line) are seen around demand (1.33995-1.34298) at 1.34368. This demand area will more than likely see some sort of reaction due to its location seen to the left.
- A pending buy order (Green line) has been set at 1.35378 just above demand at 1.35036-1.35312. The rationale behind this is because buyers have likely consumed the majority of the sellers lurking around the high (marked with an arrow) 1.35791, thus clearing the path for higher prices. A small retracement will likely be seen to collect more buyers for the rally higher, thus triggering our pending buy order.
- No P.A confirmation buy orders (Red line) are seen in the current market environment.
- Pending sell orders (Green line) seen at 1.36955 just below supply at 1.37235-1.37005 are set here since this level remains untouched, meaning unfilled orders are likely still set around this area.
- P.A confirmation sell orders (Red line) are visible below the minor resistance 1.36666 at 1.36625, this level has proved valid, but still needs to be confirmed due to a spike/wick (circled) seen above resistance, which may have consumed most of the sellers originally there. Do be on your guard with these sell orders; the higher-timeframes are indicating that higher prices may be seen this week.
- Areas to watch for buy orders: P.O: 1.34368 (SL: 1.33926 TP: Dependent on how price action approaches the zone) 1.35378 (SL: 1.34971 TP:  1.36000  1.36666 [may be subject to change depending on approaching price action]). P.A.C: No P.A confirmation orders seen in the current market environment.
- Areas to watch for sell orders: P.O: 1.36955 (SL: 1.37270 TP:  1.36666  1.36000) P.A.C: 1.36625 (SL: 1.36810 TP: Dependent on where price ‘confirms’ the level)
- Most likely scenario: With price likely having already consumed the majority of the sellers around the high 1.35791, a path north may have been cleared for the buyers. Price will likely retrace back to the origin around demand below at 1.35036-1.35312, a rally will then subsequently follow to at least the round number 1.36000 above.
For the readers’ benefit:
Price action confirmation: simply means traders will likely wait for price action to confirm a level by consuming the opposing supply or demand area, then entering a trade on a possible retracement, this may occur on the lower timeframes also.
Pending orders: means pending orders are likely seen.
Source: IC Markets Trading Desk