The charts levels and zones will be color coded for the benefit of readers as follows:
Weekly TF = Black. Daily TF = Gold. 4hr TF = Brown
Technically, nothing has changed since the last analysis. Price still remains capped between supply at 1.37309 – 1.36890 and demand at 1.36434 – 1.36696. Pro money has performed fakeouts (black and brown circles) at both areas just mentioned; making it very difficult to see which fakeout is genuine, as no opposing area has been consumed. Sellers are currently battling it out with the buyers in the lower demand area (levels above); could we see a break below?
- Areas to watch for buy orders: 1.36434 – 1.36696.
- Areas to watch for sell orders: 1.37309 – 1.36890.
- Most likely scenario: This pair is becoming problematic of late to give a likely scenario, as no area has been consumed yet (Supply: 1.37309 – 1.36890 Demand: 1.36434 – 1.36696). There may be some lower-timeframe opportunities within this range area, but in all honesty, it would be best to wait until a positive break is seen, that way we have more options available to us.
Beautiful! Price did exactly as expected. The high 1.68383 was consumed, then buyers rallied price up and consumed the 4hr supply area above at 1.68824 – 1.68714, forcing price to test the round number 1.69000 just above. The buyers and sellers are currently battling it out around the newly-formed supply/demand flip area at 1.68714 – 1.68824 and the round number just mentioned above.
- Areas to watch for buy orders: 1.68714 – 1.68824.
- Areas to watch for sell orders: 1.69963 – 1.69514.
- Most likely scenario: Price has already closed slightly above the round number 1.69000 and left a strong wick above, meaning a lot of sellers were stopped out. We will likely see price meander between the supply/demand flip area (1.68714 – 1.68824) and the round number (level above), before making a positive close higher. The reasoning behind this is there are no obstacles above until the newly-formed daily supply area at 1.69963 – 1.69514. Take a look at the two black circles around this area, these may indicate supply consumption, so price should, on a positive close above the round number, be able to rally higher with little difficulty.
Little retracement has been seen so far on this pair, other than a small reaction at a 4hr demand area at 0.92037 – 0.92203, which is located deep within a daily demand area at 0.92054 – 0.92649. I do hope some of our traders took advantage of that beautiful supply area above, which started the down leg at 0.94253 – 0.94040.
- Areas to watch for buy orders: 0.92037 – 0.92203, 0.92000, and 0.91446.
- Areas to watch for sell orders: 0.92745 – 0.92570.
- Most likely scenario: Price is currently reacting to the demand area noted in the last analysis at 0.92037 – 0.92203. We will likely see price spike through this demand area as there is a round number (0.92000) just below, no doubt jam packed with buyers and breakout sellers. This may give pro money enough liquidity to buy into (sell stops from the buyers and sells orders from the breakout sellers), to rally price up to at least the demand/supply flip area at 0.92745 – 0.92570. However, if a positive close below the round number happens, it is likely that price will drop to the daily S/R flip level at 0.91446.
At the time of writing, it looks as though we may be seeing a fakeout taking place. Take a look at the tail the current daily candle produced marked with a black circle, poetry in motion!
Don’t you just love it when price moves with energy! As reported in yesterday’s analysis, pro money may use the fakeout area at 100.927/101.000 to rally prices higher; price did just that, leaving a small tail behind stopping out any traders who had their stops to close. A reaction is currently happening at the lower (buffer) weekly trendline which was recently broken, now acting as temporary resistance.
- Areas to watch for buy orders: 100.927/101.000.
- Areas to watch for sell orders: 101.674, 102.365 – 102.128, 102.000.
- Most likely scenario: If price can consume the high marked with a black circle at 101.674, then this would likely confirm the fakeout from below, allowing price to rally to the next supply area at 102.365 – 102.128 with the round number lurking below at 102.000. Traders should remain aware, pro money may retrace price from where it is currently trading back to the fakeout area (100.927/101.000) below to collect more liquidity by stopping traders out who moved their stops to breakeven to rally price higher.