For the readers’ benefit:

Price action confirmation: simply means traders will likely wait for price action to confirm a level by consuming an 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.


EUR/USD:

Weekly TF.

Sellers on the weekly timeframe are really pushing the buyers to their limits within weekly demand at 1.34760-1.36314. Judging by the pathetic buying activity out of the aforementioned weekly demand area seen over the past few weeks, a break south will likely be seen this week. If a break does indeed happen, buyers and sellers will then be seen trading into the weekly demand area directly below at 1.32940-1.34847 (Stacked demand).

EURUSD WEEKLY

Daily TF.

Sellers have really pushed deep into daily demand at 1.34760-1.35265 which is effectively a lower timeframe daily demand area within the aforementioned weekly demand area (see above). Buying pressure was seen on Friday’s candle, could this be true rejection, or was it just pro money consuming the rest of the buyers there for a break south? Let’s take a look at an even lower timeframe to see if we can find out.

EURUSD DAILY

4hr TF.

Things got very interesting on Friday; a tail/spike was seen breaking the 4hr demand area at 1.35018-1.35375. It is however where price traded into that was interesting. In the last analysis, it was reported that the 4hr demand area below at 1.34760-1.34943 would not likely see a big reaction due to a spike/tail already appearing to consume the buyers there on 06.02.2014.

Clearly there were still active buyers around that area, however, something we have to bear in mind is that price did not only just break the 4hr demand area (1.35018-1.35375), it also spiked the round number 1.35000, which could well be adding to this stream of current buying activity we’re seeing.

Overall we still favor a drop to the downside around mid-week, the reason we say mid-week is because price will likely rally up to the 4hr decision point area at 1.35714-1.35609, where unfilled sell orders are likely waiting before continuing south which will possibly give pro money the much-needed liquidity they require.

Pending/P.A confirmation orders:

  • No pending buy orders (Green line) are seen in the current market environment.
  • No P.A confirmation buy orders (Red line) are seen in the current market environment.
  • Pending sell orders (Green line) are seen just below the decision-point supply area (1.36632-1.36485) at 1.36416. The reasoning behind placing a pending sell order here is due to the simple fact we have seen buyers consumed at multiple lows and demand areas below, thus making it a low-risk high-probability trade.
  • Pending sell orders (Green line) area seen just below the 4hr decision-point area (1.35714-1.35609) at 1.35596. The reason a pending sell order was allocated here is because this is where pro money (on this timeframe) possibly made the decision to sell price into the 4hr demand below at 1.35018-1.35375.
  • P.A confirmation sell orders (Red line) are seen just below supply (1.37224-1.37028) at 1.36894. A P.A.C order was selected here due to the reaction seen at the aforementioned supply area proving its validity. However, pro money may well decide to push price higher into this supply area if/when price returns to it, thus making it a risky trade for a stop above the high 1.36995 which could be very easily be stopped out if a pending sell order was set, hence the need to wait for confirmation.

EURUSD 4HR

Quick Recap:

The weekly timeframe shows sellers are aggressively pushing the buyers to their limits within weekly demand at 1.34760-1.36314, while on the daily timeframe, a spike’/tail was seen on Friday within daily demand at 1.34760-1.35265, could this be rejection or consumption? That is the question!  Sellers have pushed below the 4hr demand at 1.35018-1.35375 on the 4hr timeframe right into 4hr demand directly beneath at 1.34760-1.34943. Overall we still favor a drop to the downside around mid-week, the reason we say mid-week is because price will likely rally up to the 4hr decision point area at 1.35714-1.35609 before continuing south.

  • Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment. P.A.C: No P.A confirmation buy orders are seen in the current market environment.
  • Areas to watch for sell orders: P.O: 1.36416 (SL: 1.36584 TP: Dependent on price action approach) 1.35596 (SL: 1.35768 TP: Dependent on price approach). P.A.C: 1.36894 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

 

GBP/USD:

Weekly TF.

Sellers are beginning to show some interest now within weekly supply at 1.76297-1.67702. On this timeframe, the nearest logical weekly demand area is seen below at 1.66917-1.67939. If price does indeed reach this far, it would definitely be worth watching lower-timeframe price action for an entry long here.

GBPUSD WEEKLY

Daily TF.

The current wave of selling interest does not exactly resemble enthusiasm on the daily timeframe at the moment. Agreed, price has declined, but it is now seen reacting at a minor daily S/R flip level at 1.70597. If price does break below here, a decline will likely be seen towards the next daily S/R flip level below at 1.69712. Conversely, if the buyers take over form where we are currently trading at, we could very well begin seeing the start of a rally up to a beautiful daily supply at 1.76297-1.73024 which is located deep within the aforementioned weekly supply area mentioned above.

GBPUSD DAILY

4hr TF.

Price did indeed drop down to the round number 1.71000 where the buyers appeared to have put up a good fight, but the sellers were clearly too strong for them on this occasion. Price as expected shot straight down to the 4hr S/R flip area at 1.70617-1.70459 where a bullish reaction was indeed seen. We however did not expect the sellers to push price so deep past the aforementioned 4hr S/R flip area in the process. With this area pretty much consumed of demand, we could very well see a decline in value towards the round number below at 1.70000 where a rally in higher prices will likely be seen.

Therefore, with the daily timeframe showing price trading at a minor daily S/R flip level (levels above); a small decline on the 4hr TF down to the round number 1.70000 would appear as a nice fakeout on the daily timeframe of the aforementioned daily S/R flip level. Of course, this is only one possible scenario, so do take it as such.

Pending/P.A confirmation orders:

  • The Pending buy order (Green line) set just above demand (1.70617-1.70459) at 1.70662 has been stopped out.
  • New P.A confirmation buy orders (Red line) are seen just above the round number 1.70000 at 1.70058. A P.A confirmation buy order was set here simply because big number levels such as these could very well see a deep test/spike south, hence the need to wait for confirmation here.
  • No pending sell orders (Green line) are seen in the current market environment.
  • P.A confirmation sell orders (Red line) are seen just below the round number 1.72000 at 1.71943. We have placed a P.A confirmation sell order here simply because these psychological levels are prone to deep tests/spikes, so sometimes it is better to wait for that all important confirmation.

GBPUSD 4HR

Quick Recap:

Sellers are beginning to show some interest within weekly supply at 1.76297-1.67702, while on the daily timeframe we can see this selling pressure has pushed price right into a minor daily S/R flip level at 1.70597 where the buyers are indeed reacting (at the time of writing).  A deeper push than expected was seen below the 4hr S/R flip area at 1.70617-1.70459, this unfortunately stopped out our pending buy order set at 1.70662. With price likely consuming the majority of demand around the aforementioned 4hr S/R flip area; we will likely see a small decline in value towards the round number 1.70000 before higher prices are seen.

  • Areas to watch for buy orders: P.O: No pending buy orders are seen in the current market environment.   P.A.C: 1.70058 (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: 1.71943 (SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

 

AUD/USD:

Weekly TF.

Price has been relatively boring on this timeframe with buyers and sellers seen trading in a consolidation (0.94600/0.92046). A few weeks back the buyers did attempt to trade and close above higher, but were quite quickly hammered back down into this consolidation area.

AUDUSD WEEKLY

Daily TF.

Over the past two to three weeks, the majority of the trading action has been taking place between the low 0.93208 and daily supply above at 0.95425-0.94852. Range traders are more than welcome to trade the limits here, however, for us, we will wait for a break and attempt to trade the retest, so, on this timeframe it is a waiting game.

AUDUSD DAILY

4hr TF.

Price has now pushed above the round number 0.94000 possibly clearing out the majority of the sellers, and obviously trapping breakout buyers there, so effectively, price is now free to rally higher up to the 4hr decision-point level at 0.94408.

Before price continues higher, traders should be prepared for a possible retracement back down to the 4hr demand at 0.93208-0.93417 as pro money will likely not have the required liquidity (in this case sell orders to buy into) to move price up this far.

Pending/P.A confirmation orders:

  • New pending buy orders (Green line) are seen just above demand (0.93208-0.93417) at 0.93512. The reason a pending buy order is valid here is because we have seen the buyers possibly consume most of the sellers around the round number 0.94000, thus clearing the way north. A retracement is likely to be seen beforehand though to around the 0.93500-0.93348 area.
  • P.A confirmation buy orders (Red line) are seen just above the decision point level (0.92566-0.92736) at 0.92775.  The reason for placing a P.A confirmation buy order here rather than pending buy order is simply because we were trading just above a daily demand ‘buy zone’ at 0.92046-0.92354, meaning pro money could very well just ignore this level completely and trade deeper into the aforementioned daily demand area, so, confirmation is the order of the day!
  • Pending sell orders (Green line) are seen just below supply (0.95425-0.95096) at 0.95052. A pending sell order is placed here due to this being an area where pro money was interested in before; see how close price came to the supply area? (Levels above), this indicates possible strong supply (selling pressure), so the next time price visits we can expect some sort of reaction.
  • The pending sell order (Green line) set just below the decision point level (0.94408) at 0.94382 has now been closed at 0.93443 with good profits locked in.
  • No P.A confirmation sell orders (Red line) are seen in the current market environment.

AUDUSD 4HR

Quick Recap:

The weekly timeframe shows price is still consolidating (0.94600/0.92046), while on the daily timeframe we are waiting for either the daily supply area at 0.95425-0.94852, or the low 0.93208 to break. We closed our short position on the 4hr timeframe up from 0.94382 at 0.93443 with nice profits locked in. The buyers have likely consumed the majority of the sellers and breakout buyers around the round number 0.94000 which could have cleared the way north up to the 4hr decision-point area at 0.94408. However before this rally happens, we will likely see a retracement to around the 0.93500-0.93348 area, which will fill our pending buy order set at 0.93512 in the process.

  • Areas to watch for buy orders: P.O: 0.93512 (SL: 0.93175 TP: Dependent on price approach). P.A.C: 0.92775 (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: 0.95052 (SL: 0.95467 TP: Depending on price approach) P.A.C: No P.A confirmation sell orders seen in the current market environment.

 

USD/JPY:

Weekly TF.

Buyers and sellers are still battling it out around the weekly S/R flip level at 101.206, at this point in time though; the sellers seem to be winning. Could this be an early sign we are going to break lower? If it is, price could very well trade down to weekly demand area at 96.554-98.585 as there is very little in the way of trouble demand stopping it.

USDJPY WEEKLY

Daily TF.

For the past two months or so most of the trading action has taken part within a range. Daily resistance is seen above at 102.713 and daily demand below at 100.747-100.967. If we see a positive close below the aforementioned daily demand area, this could very well be an early sign that price is going to drop to at least the daily demand area below at 99.562-100.247.

If the above does happen, what would this look like on the weekly timeframe? A good bullish reaction being seen at daily demand (99.562-100.247) could effectively help facilitate a fakeout below the weekly S/R flip level. This would cause a lot of upset and confusion for most traders attempting to go long around the daily demand area at 100.747-100.967, and more importantly this would give pro money bucket loads of liquidity to move prices higher.

USDJPY DAILY

4hr TF.

It was reported in the last analysis that price was still likely going to continue declining once we hit the 4hr D/S flip area at 101.400-101.465, and it did just that. However, we were expecting a nice bullish reaction off of the 101.227 area, and as we can all see the sellers slammed this level harder than we expected!

A reaction was seen around the 101.107 area and price then rallied back up to the 4hr D.S flip area (levels above), where the sellers then took control.

Taking into consideration our current location on the higher timeframes (see above), we could still see some bullish price action even if a break of the higher-timeframe demand/support areas is expected soon. The 101.107 area is clearly a proven area, nonetheless just below this is a round number 101.000 where active buyers are most likely waiting. So with this in mind, imagine for a moment how many traders will be going long around the 101.107 area, now imagine if you were the well-funded traders that control the market, you would clearly want these stops as it is liquidity to you! Pro money will very likely push south early this week spiking the aforementioned low, and the round number (level above), thus collecting the buyers’ stops (sell orders) and breakout sellers’ orders and using these orders to buy into! So, if prices get this low, do expect a nice reaction to be seen.

Pending/P.A confirmation orders:

  • Pending buy orders (Green line) are seen just above the round number 101.000 at 101.020. The reason for setting a pending buy order here is because we are currently trading around a weekly support level (101.206). We would not normally set a pending order around psychological levels such as these, but since we are in a great higher-timeframe location it is worth the risk.
  • The pending buy order (Green line) set just above the 101.227 area at 101.249 has been stopped out.
  • No P.A confirmation buy orders (Red line) are seen in the current market environment.
  • Pending sell orders (Green line) are seen just below supply (103.294-102.983) at 102.953. A pending sell order was set here due to this being an area where likely unfilled sell orders are.
  • The pending sell order (Green line) set just below a decision-point level (resistance, 101.754) at 101.696 has been closed after our final take-profit level set below at 101.227 was hit.
  • P.A confirmation sell orders (Red line) are seen just below supply (102-191-102.104) at 102.074. A P.A confirmation sell order was used here purely for the simple fact we are trading around a higher-timeframe weekly support level at 101.206 meaning we may see a small reaction, but nothing to write home about, hence the need for confirmation!

USDJPY 4HR

Quick Recap:

The weekly timeframe still shows buyers and sellers battling it out around the weekly S/R flip level at 101.206, while on the daily timeframe price is still trading between daily resistance above at 102.713 and daily demand below at 100.747-100.967. The 4hr timeframe has just recently hit 4hr supply at 101.400-101.465 which will likely be the push the sellers need to get down to the round number 101.000 where a bullish reaction is very likely to be seen.

  • Areas to watch for buy orders: P.O: 101.020 (SL: 100.786 TP: Dependent on price approach) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
  • Areas to watch for sell orders: P.O: 102.953 (SL: 103.317 TP: Dependent on price approach) P.A.C: 102.074 (SL: 102.214 TP: Dependent on approaching price action after the level has been confirmed).

 

EUR/GBP:

Weekly TF.

The weekly timeframe still shows the overall trend is down, however huge weekly demand at 0.76931-0.78623 is getting ever so closer week-by-week. To the left, there is very little in the way of obvious weekly demand on this timeframe to stop price from hitting the aforementioned weekly demand area within a few weeks or so.

EURGBP WEEKLY

Daily TF.

Price still remains trading between daily demand at 0.78862-0.79206 and a minor daily S/R flip level at 0.79751. Taking the weekly timeframe into consideration for a moment, and remembering lower prices are likely expected, a break of the daily demand area will quite possibly see a break south very soon; this will likely see prices dropping to daily demand below at 0.78117-0.78533.

EURGBP DAILY

4hr TF.

It was reported in the last analysis that the first trouble level for the buyers around the 4hr demand area at 0.78862-0.79048 would likely be around the high 0.79170, and if we see a clean break above there, price could very well advance to the 4hr S/R flip level at 0.79358.

Well, price did break above the high 0.79170 and also made an attempt to touch base with the 4hr S/R flip level at 0.79358 before the sellers once again got involved and hammered price back down to the aforementioned 4hr demand area. It is very difficult for us at the moment as the weekly timeframe and daily timeframe are currently giving conflicting signals. Notice that the weekly timeframe shows price is declining ever so closer to weekly demand (see above) while the daily timeframe shows the buyers reacting out of daily demand (levels above), so until we see some sort of direction on the higher timeframes, we are going to be very careful regarding targets and stop-loss placements on the 4hr timeframe. However if we see a push back up to the 4hr S/R flip level at 0.79358, and break above it, we can likely expect price to rally to a nice 4hr supply area at 0.79795-0.79684, conversely, a break below the 4hr demand area (levels above) could force price to test 4hr demand at 0.78602-0.78320.

Pending/P.A confirmation orders:

  • The pending buy order (Green line) set just above demand (0.78862-0.79048) at 0.79076 is now active, our first take-profit level has been hit at 0.79170, so do keep an eye out for our second take-profit level set at 0.79358.
  • No P.A confirmation buy orders (Red line) are seen in the current market environment.
  • Pending sell orders (Green line) are seen just below a supply area (0.79795-0.79684) at 0.79651. The reason for a pending sell order being set here, rather than a P.A confirmation sell order was because this area looks very hot for a first-time reaction. Notice how price faked above the S/R flip level at 0.79679 then dropped back down, there is very likely unfilled sell orders still lurking around this area, hence the need for a pending sell order.
  • No P.A confirmation sell orders (Red line) are seen in the current market environment.

EURGBP 4HR

Quick Recap:

The weekly timeframe shows sellers appear to be trading price down to weekly demand at 0.76931-0.78623, and to the left there is very little that will likely stop them. Price still remains trading between daily demand at 0.78862-0.79206 and a minor daily S/R flip level at 0.79751. Taking the weekly timeframe into consideration for a moment, and remembering lower prices are likely expected, a break of the daily demand area is more likely to happen before the daily S/R flip level (levels above) does. If a push back up to the 4hr S/R flip level at 0.79358 and break above it is seen, we can likely expect price to rally to the 4hr supply area at 0.79795-0.79684, conversely, a break below the 4hr demand area (levels above) could force price to test 4hr demand at 0.78602-0.78320.

  • Areas to watch for buy orders: P.O: 0.79076 (Active) (SL: 0.78846 TP: [1] 0.79170 [2] 0.79358 [3] 0.79679) P.A.C: No P.A confirmation buy orders are seen in the current market environment.
  • Areas to watch for sell orders: P.O: 0.79651 (SL: 0.79828 TP: Dependent on price approach). P.A.C: No P.A confirmation sell orders are seen in the current market environment.

 

USD/CAD:

Weekly TF.

The week before last (07/11) was showing such positive signs of a big bullish move up from weekly demand at 1.05715-1.07008. However, the weekly candle just closed shows the complete opposite, the buyers seemed to attempt to push higher, but the sellers were having none of it, and slammed the buyers back down forming a relatively large wick. At present price is seen capped between the aforementioned weekly demand area and weekly supply above at 1.09592-1.08133.

USDCAD WEEKLY

Daily TF.

The daily timeframe shows price did not really move much at all last week, in fact it was under 100 pips! Last week saw the decision-point area at 1.07508-1.07293 get consumed; this potentially opened the path to higher prices up to at least the daily S/R flip level at 1.08277. Nonetheless, before price hits the aforementioned daily S/R flip level, we may very well see a reversal back down to daily demand at 1.05874-1.06680, so do keep this in mind.

USDCAD DAILY

4hr TF.

A small rally from the 4hr decision-point area at 1.07207-1.07324 did indeed happen, and the buyers were in fact stopped in their tracks around the 1.07731 (circled) area as reported may happen in the last analysis.

However, we were expecting a much more exciting rally than what was seen, we knew to watch out for the aforementioned circled area, but did not think it would stop the buying pressure, this just shows we all need to expect the unexpected in the market!

The analysis of the daily timeframe above shows that price may see a retracement to daily demand below (levels above). If this does happen, price could react at two places on the 4hr timeframe, 1. The ignored 4hr supply area which is now demand at 1.06749-1.06578, or if pro money want to be really mean, as they will likely know there will be a lot of stops around this area, they may drop price even further to area number 2. 4hr demand at 1.06041-1.06312. So for this week, it is a possibility that price will decline in value to either of the two places mentioned above.

Pending/P.A confirmation orders:

  • The pending buy orders (Green line) set just above the decision point (1.07207-1.07324) at 1.07347 has been stopped out.
  • P.A confirmation buy orders (Red line) are seen just above the round number 1.07000 at 1.07047. The reason a P.A confirmation buy order was set here is simply because a pending buy order would be too risky as (on this timeframe) there is no logical area for a stop loss order to be placed.
  • No pending sell orders (Green line) are seen in the current market environment.
  • P.A confirmation sell orders (Red line) are seen just below the round number 1.08000 at 1.07952. The reason a P.A confirmation sell order was set here is simply because a pending sell order would be too risky as (on this timeframe) there is no logical area for a stop loss order to be placed.

USDCAD 4HR

Quick Recap:

The weekly timeframe is currently seeing a weak response from the buyers out of weekly demand at 1.05715-1.07008, while on the daily timeframe, the path north looks clear up to a daily S/R flip level at 1.08277, however before price reaches there we should remain vigilant to the fact a reversal back down to daily demand at 1.05874-1.06680 may well be seen. Our pending buy order at 1.07347 was unfortunately stopped out on the 4hr timeframe; the sellers around the 1.07731 area were too strong. Price will likely see a decline in value this week (as per the daily chart) to two specific areas 1. 1.06749-1.06578 and area 2. 1.06041-1.06312 before much higher prices is seen.

  • Areas to watch for buy orders: P.O: No pending buy orders seen within the current market environment.  P.A.C: 1.07047 (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 seen within the current market environment. P.A.C: 1.07952 SL: Dependent on price action after the level has been confirmed TP: Dependent on approaching price action after the level has been confirmed).

 

USD/CHF:

Weekly TF.

One word currently describes price action on the weekly timeframe and that is BORING! Price has now been consolidating about the weekly demand area at 0.85664-0.88124 for nine consecutive weeks.

USDCHF WEEKLY

Daily TF.

Last week the buyers really showed their financial muscle, they bought heavily into price pushing it up to daily supply at 0.90372-0.90042 where a picture-perfect bearish pin-bar reaction took place. Price still remains capped between the aforementioned weekly supply area and a daily S/R flip level below at 0.88608 with a break of either of these levels yet to be seen.

DAILY TF

4hr TF.

Following on from the last analysis on this pair, price did not decline down to the 4hr decision-point level at 0.89540-0.89614 as expected. As price action unfolded, we could clearly see more buyers were coming into the market, notice the tails south had stopped, and the wicks north had continued (marked with arrows) indicating pro money buyers were likely consuming supply for a possible rally higher, and that is exactly what happened.

A beautiful reaction has been seen at the round number 0.90000 as we expected it might, these big figure levels attract so much attention! Judging by the bearish price action seen so far, we believe we have a little way to drop yet, at least to around the 4hr decision-point area at 0.89540-0.89614. Taking all of this into consideration, price may not drop straight away early in the week, we may even see a small reversal back up to the round number 0.90000, which would consequently stop out all the traders originally short there with their stops set at breakeven, thus giving more liquidity for pro money to drop price down to the aforementioned 4hr decision-point area.

Pending/P.A confirmation orders:

  • Pending buy orders (Green line) are seen just above the decision-point level (0.89540-0.89614) at 0.89624. A pending buy order was placed here because price is currently seen retracing, and this area being the most likely place unfilled buy orders are remaining, so it seemed logical to set this type of order.
  • P.A confirmation buy orders (Red line) are seen just above the low 0.88546 at 0.88586. The reason that a P.A confirmation buy order was set here rather than a pending buy order was simply because there is no logical area for a stop loss, and the low (level above) will be likely prone to deep tests, or worse, a positive break below, hence the need to wait for confirmation.
  • The pending sell order (Green line) set just below the round number 0.90000 at 0.89974 is now active; do keep an eye on our first take-profit level set at 0.89741.
  • No P.A confirmation sell orders (Red line) are seen in the current market environment.

USDCHF 4HR

Quick Recap:

The weekly timeframe is too boring to even talk about! Price has been consolidating above weekly demand at 0.85664-0.88124 and has been for nine consecutive weeks. Buyers were active last week on the daily timeframe as price was pushed up to daily supply at 0.90372-0.90042, this is where the sellers took over and formed a nice-looking bearish pin-bar pattern. Our pending sell order set at 0.89974 has been beautifully filled and we are sitting in a nice profit at the moment. Price will likely begin the week consolidating; a push back up to the round number 0.90000 is definitely not out of the question before the overall sell off takes place down to the 4hr decision-point area at 0.89540-0.89614.

  • Areas to watch for buy orders: P.O: 0.89624 (SL: 0.89523 TP: Dependent on price approach). P.A.C: 0.88586 (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: 0.89974 (Active) (SL 0.90140 TP: [1] 0.89741 [2] 0.89624). P.A.C No P.A confirmation sell orders seen in the current market environment.

 

XAU/USD (Gold)

Weekly TF.

The weekly timeframe shows the buyers were in control of the market for five consecutive weeks with each new week forming a higher high; however last week put an end to this run and nearly engulfed three prior weekly candles seeing the market closing at 1310.93.

XAUUSD WEEKLY

Daily TF.

The ignored daily decision-point level at 1292.52 was not given enough credit in the original analysis; it has proved to be a fantastic level. Overall gold saw a lot of movement last week, we could see price had likely consumed the sellers around daily supply at 1318.12-1331.08 which possibly cleared the path north up to daily supply at 1391.97-1366.80. The sellers really then took control and hammered price down to the aforementioned ignored daily decision- point level (level above), and a rally higher followed. Could this level be all that’s needed to push price higher up to daily supply (1391.97-1366.80)?

GOLD DAILY

4hr TF.

Clearly the buyers really liked the daily ignored decision-point level (seen clearer on the daily timeframe). as price rallied hard from here right up to a 4hr minor S/R flip level at 1323.04, this is where the sellers then took over and pushed price back down to a 4hr S/R flip level at 1304.77.

As we have already seen price consume the majority of sellers around daily supply at 1318.12-1331.08, we naturally expect higher prices. However, we also know price could drop a lot further down to at least daily demand at 1238.41-1254.85 before we hit the daily supply area at 1391.97-1366.80, the reason being this appears to be the origin of the overall move up (check it out on the daily chart). So with this in mind price will likely decline a little to the ignored decision-point level at 1292.52 where a bullish reaction is expected. Now we are not saying we expect price to shoot from here straight to daily supply at 1391.97-1366.80, what we are saying though is this level has been proved to be valid as the buyers have consumed sellers above the high (marked with a flag) at 1313.66 so a bounce at the very least should be seen here.

Pending/P.A confirmation orders:

  • New pending buy orders (Green line) are seen just above the ignored decision-point level at 1292.52 at 1293.77. A pending buy order is valid here since this level has been proven by the buyers who consumed the sellers around the high marked with a flag at 1313.66, making this area prime for a reaction when/if price reaches here.
  • P.A confirmation buy orders (Red line) are seen just above the S/D flip area (1284.77-1280.53) at 1285.71. We have set a P.A confirmation buy order here simply because we could not find a logical area for the stop-loss order, so to avoid any deep spikes; we have decided to wait for confirmation.
  • No pending sell orders (Green line) are seen in the current market environment.
  • The P.A confirmation sell order (Red line) set just below the S/R flip level (1304.77) at 1303.40 has now been removed, price had rallied too far from the entry level making it invalid.

GOLD 4HR

Quick Recap:

The weekly timeframe shows the sellers put an end to five-week long rally by nearly engulfing three prior weekly candles. Buyers on the daily timeframe have confirmed the ignored daily decision-point level at 1292.52 making this a level to watch in the near future. Price on the 4hr timeframe will likely decline a little at the beginning of this week towards the ignored daily decision-point level at 1292.52 where the buyers are still expected to be active. The first trouble area we can see (at the time of writing) is the 4hr S/R flip level above at 1304.77.

  • Areas to watch for buy orders: P.O: 1293.77 (SL: 1286.75 TP: Dependent on price approach). P.A.C: 1285.71 (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 seen in the current market environment. P.A.C: No P.A confirmation sell orders seen in the current market environment.