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:

4hr TF.

The higher-timeframe picture resembles the following:

  • The sellers are still pushing the buyers to their limits within the weekly demand area at 1.34760-1.36314 with buyers at the moment showing very little interest.
  • The daily timeframe shows a spike/tail deep into daily demand at 1.34760-1.35265 with very little interest being seen by the buyers at the moment (look at that selling wick just forming!). A break below the aforementioned daily demand area could well see prices testing daily demand below at 1.33984-1.34397.

The market opened at 1.35247 and the buyers took immediate control pushing prices up to as high as 1.35479 hitting what appears to be 4hr temporary resistance (1.35407).

Above this 4hr temporary resistance level, there appears to be a clear path up to the 4hr decision-point area (supply) at 1.35714-1.35609, as the wick marked with a circle has likely cleared any traders attempting to fade the area, but also any breakout buyers in the process.

Taking into consideration our current location on the higher timeframe it does not look good for the buyers at present. However if we are to indeed see a break of Weekly demand at 1.34760-1.36314, pro money will most likely require the liquidity for a move such as this, so a push up to the 4hr decision-point area (supply – levels above) may well be seen before we see a nice sell off. Keep an eye on the following areas for a bullish reaction that could possibly take price up to the aforementioned 4hr decision-point area. 1.35164, which could be hit very soon, and of course the 4hr demand area below at 1.34760-1.34943.

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:

With both the weekly and daily timeframes showing buying weakness within demand (Weekly: 1.34760-1.36314 Daily: 1.34760-1.35265), it is very possible we may see lower prices on the 4hr timeframe. However before this happens, pro money will likely require the liquidity for a decline in price such as this. Watch the following areas for bullish price action (1.35164….1.34760-1.34943) for a push up to the 4hr decision-point area (supply) at 1.35714-1.35609 hopefully filling our pending sell order set at 1.35596 in the process. This will likely give pro money the liquidity they require for a nice sell off which will consequently break below the aforementioned higher-timeframe demand areas.

  • 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:

4hr TF.

The higher-timeframe picture resembles the following:

  • The weekly timeframe shows the sellers are starting to finally show interest within weekly supply at 1.76297-1.67702, could a move down to the weekly demand area at 1.66917-1.67939 be in order?
  •  Most of the current trading action on the daily timeframe is taking place just above a minor daily S/R flip level at 1.70597. A strong push from here could see price testing daily supply at 1.76297-1.73024, conversely a drop below this level would likely see a test of the daily S/R flip level at 1.69712.

The market opened at 1.70805 with the buyers seen taking temporary control. A small rally was seen just missing the round number 1.71000 by a pip or two. The sellers then made a reasonable counter attack, but this was unfortunately stopped by the sellers relatively quickly.

Could a drop down to the big round number level 1.70000 be seen soon? It is very possible as we know, and it is highly likely pro money know, there are millions upon millions of orders sitting around that level just waiting to be filled, or in a most cases stopped out.

As we can see from above, the daily timeframe is trading around a current S/R flip level at 1.70597, a drop below here would no doubt trigger a lot of the traders’ stops who are currently long there, thus giving pro money their stops (sell orders to buy into). Not only this, a deep test below the round number 1.70000 would give pro money a load more sell orders to buy into. This deep test could be timed perfectly with the daily S/R flip level at 1.69712 sitting just below where there are very likely active pro money buy orders just waiting for this move. It will be definitely exciting to see how price action unfolds!

Pending/P.A confirmation orders:

  • Pending buy orders (Green line) are seen just above the round number 1.70000 at 1.70058.  A pending buy order has been placed here since a nice reaction will more than likely be seen at a big-figure level such as this. Our stop will be wide enough to cope with any deep tests, so we should see some profit from this trade if/when price reaches this level.
  • No P.A confirmation buy orders (Red line) are seen in the current market environment.
  • 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:

A drop down to the big-figure level at 1.70000 is highly likely to be seen soon. We have set a pending buy order just above at 1.70058, however our stop is set quite a way below at 1.69446, and this should hopefully keep us out of any trouble if pro money does indeed decide to perform a deep stop hunt here.

  • Areas to watch for buy orders: P.O: 1.70058 (SL: 1.69446 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: 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:

4hr TF.

The higher-timeframe picture resembles the following:

  • The weekly timeframe is still depicting consolidating price action with the upper limits being seen at 0.94600 and the lower at 0.92046.
  • Buyers and sellers have been trading within a small range on the daily timeframe (daily supply being seen above at 0.95425-0.94852 and a low below at 0.93208). Once we see a break of either of these areas, we will likely have more idea on possible near-term direction.

The market opened at 0.93866, following this, buyers and sellers formed a tight range clearly depicting indecision among the traders. A small decline has been recently seen only to be quickly rejected by the buyers.

As reported in the last analysis, price pushed above the round number 0.94000 (marked with a circle) possibly clearing out the majority of the sellers that were lurking there. So with that taken on board, the path north up to the 4hr decision-point level at 0.94408 appears to be clear.

Before price continues higher, traders should be prepared for a possible retracement back down to the 4hr demand at 0.93208-0.93417 or just above at the 0.93500-0.93348 area, 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:

  • 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.
  • No P.A confirmation sell orders (Red line) are seen in the current market environment.

AUDUSD 4HR

Quick Recap:

The buyers have likely consumed the majority of the sellers and breakout buyers around the round number 0.94000 (marked with a circle) 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 hopefully 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.