As we can see on the daily timeframe below, price is not showing much movement in between supply (minor resistance) at 102.645 and demand below at 101.532-100.787.
As shown already above on the daily timeframe, price is showing very little movement on the 4hr timeframe also. The round number 102.000 has seen a touch recently with the sellers showing very little interest in taking things further south.
As nothing technically has changed since the last analysis, it is worth keeping the following in mind:
A possible decision point area may have been formed at 102.096, the reason this area remains a possibility is because price has yet to consume the buyers around the low 101.739 (marked with a check sign), if this does happen, this area will be a great place to set pending sell orders at.
Another piece of information available on the chart is how the buyers have formed a small up trend, but it is not the trend we are interested in at the moment, it is the way the majority of demand (buyers) has been consumed by the sellers, in theory price is free to drop to at least the next major decision point (101.542) within demand at 101.427-101.660, however this depends on whether pro money have enough buyers to sell into (liquidity), if not they will need to buy price back up to the last decision point at around 102.367 at the time of writing.
Pending/P.A confirmation orders:
- Pending buy orders (Green line) are seen deeper within demand (101.427-101.660) at 101.542. A pending order is valid here since pro money are frequently seen testing deeper in confirmed demand areas such as this, for active buyers.
- No P.A confirmation buy orders (red line) are seen in the current market environment.
- Pending sell orders (Green line) are visible at 102.980, deep within supply (103.055-102.742), this area may well appear to be weak now, but the way price reacted at the circled area within supply indicates pro money activity, meaning sell orders may be left unfilled there, so a pending sell order is permitted.
- Near-term pending sell orders (Green line) are seen at 102.367. A pending order is valid here since this is the area where pro money made the ‘decision’ to take prices lower into demand (101.427-101.660), unfilled sell orders were likely left there in the process.
- No P.A confirmation sell orders (Red line) are seen in the current market environment.
Exactly the same as yesterday’s analysis: Pro money appears to have consumed the majority of buyers (marked with a trendline) as they have been pushing price up, ultimately clearing the path south for possible heavy selling. However, pro money may not have the liquidity for a sell off to commence, hence the need to bring price back up to the last logical decision point, which at the time of writing is 102.367 as the one below it, is only a ‘possible’ decision point area at the moment. The next few days will prove to be quite exciting for this pair with some nice-moving price action expected.
- Areas to watch for buy orders: P.O: 101.542 (SL: 101.389 TP: 102.000 but may well change if the market sees any new developments) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
- Areas to watch for sell orders: P.O: 102.980 (SL: 103.108 TP: 102.117, but may well change if the market sees any new developments) 102.367 (SL: 102.458 TP: Dependent on how price action approaches this area). P.A.C: No P.A confirmation sell orders are 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.
Source: IC Markets Trading Desk