USDCHF Monday 23rd June: Weekly technical outlook and review.

Stacked demand is seen below at 0.85500-0.82750 and 0.85670 – 0.88360, whilst stacked supply is also seen above at 0.99160 – 1.00530 and 0.99710 – 0.97460.

Technically, nothing much has changed on the weekly timeframe, price seems to be consolidating just above demand at 0.85670-0.88360, with buyers and sellers both showing little interest at the moment.


Daily TF.

The marked arrows on the chart resemble where supply has been likely cleared, the next fresh supply area is at 0.91563-0.90844. Price will likely see a decline in value to around the S/R flip level at 0.88501 before any higher prices are seen as pro money likely need logical demand to move prices higher.


4hr TF.

The buyers were certainly in control towards the end of last week from demand at 0.88973-0.89168; however sellers did make an appearance late Friday reacting off of the lower limits of the mini range (0.90116/0.89643).

Price will likely see more of a decline in value this week since there is no logical demand left on the higher timeframes other than the nearest one being at the daily S/R flip level (0.88501).

Pending/P.A confirmation orders:

  • No pending buy orders (Green line) are seen in the current market environment.
  • P.A confirmation buy orders (Red line) are seen just above the daily S/R flip level (0.88501) at 0.88533. This level needs to see some confirming price action before any entry is placed in the market, due to their being no logical area for a stop loss order.
  • Near-term P.A confirmation buy orders (Red line) are seen within demand (0.88973-0.89168) at 0.89029, just above the round number 0.89000, as price may retrace to demand to collect unfilled orders deeper within this area.
  • The pending sell order (Green line) visible at the base of supply (0.90381-0.90033) just above the round number 0.90000 at 0.90063 still remains active. The first target has been hit at 0.89168, we are allowing our final position to run, giving price room to move and hopefully hit our final target at 0.88501.
  • No P.A confirmation sell orders (Red line) are seen in the current market environment.


Quick Recap:

Not much information to go by on the higher timeframes, well, nothing giving us any indication of possible direction, the weekly timeframe has however reacted out of demand (0.85670-0.88360), but over the previous few weeks, the buyers have shown little interest in taking things higher. The daily timeframe indicated price may drop further to at least the daily S/R flip level at 0.85501 as there is no logical demand seen to take prices any higher. We still have a pending sell order live in the market up from 0.90063; we still believe price has more to the downside as most of the buyers should now have been consumed in and around demand at 0.88973-0.89168 leaving the path clear until at least demand at 0.88656-0.88816.

  • Areas to watch for buy orders: P.O: There are no pending buy orders seen in the current market environment. P.A.C: 0.88533 (SL: Dependent on approaching price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed) 0.89029 (SL: likely to be set at 0.88784 TP: Dependent on approaching price action after the level has been confirmed).
  • Areas to watch for sell orders: P.O: (Active – 1st target hit) 0.90063 (SL: 0.90412 TP: [1] 0.89168[2] 0.88501) P.A.C: There are currently no P.A confirmation sell orders seen in the current market environment.

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.

Sources: IC Markets Trading Desk

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