For the readers’ benefit:

Price action confirmation levels: Simplymeans 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 Timeframe: The EUR/USD sold off sharply last week breaking below the weekly demand area at 1.31037-1.32262. This move potentially cleared the way down to a prominent weekly ‘buy zone’ seen at 1.26591-1.28010.

Daily Timeframe: Prices are stalling after touching daily demand at 1.27541-1.28676. We’re still expecting higher prices from here, since this area is sitting on top of a considerable weekly ‘buy zone’ at 1.26591-1.28010. If follow-through buying is seen, a key area to pay attention to is around the daily decision-point area (supply) above at 1.31589-1.31091.

4hr Timeframe: There’s not really much to report regarding the Euro, since relatively low volatility is being seen. However a reminder of where we are currently at will certainly not hurt.

We previously had a signal to go long, the break above an important 4hr decision-point level at 1.29580 likely implied sell orders had been removed, indicating a rally higher will be seen up to at least the round number 1.3. Our pending order was filled on Thursday at 1.28936, and price is at the time of writing in the green. However, we have to be honest here; a close above the aforementioned 4hr decision-point level would give us more confidence to remain in this trade over the weekend, in fact, the only thing really keeping us in the trade for the time being is that the buyers are seen somewhat active around the daily demand area mentioned above at 1.27541-1.28676.

 EURUSD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 1.28936 (Active) (Stop loss: 1.28437 Take profit level(s): [1] 1.29839 [May be subject to change]). Price action confirmation levels:  No price action confirmation buy levels are seen in the current market environment.
  • Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: 1.29950 (Stop loss: Dependent on price action after the level has been confirmed, Take profit levels(s): Dependent on approaching price action after the level has been confirmed).

 

GBP/USD:

Weekly Timeframe: Serious buying interest has come into the market around the 1.60506 level, a little above our pre-determined area of weekly demand at 1.58533-1.60157. Unfortunately for the buyers, price is currently trading around a monster weekly resistance flip level at 1.62591, where at the time of writing, the sellers are showing very little interest in taking prices lower.

Daily Timeframe: The gap below daily demand at 1.62510-1.63401 seen at the beginning of the week likely signals a continuation move down to around a fantastic-looking area of daily support at 1.58992 (neatly located within the aforementioned weekly demand area), since looking to the left of current price, most of the daily demand zones appear to have already been consumed. However, active buyers seem to be coming into the market around the 1.60506 level (as already mentioned on the weekly-timeframe analysis), which has brought price up to a daily demand flip area at 1.62510-1.63401. This could very well be pro money at work here, rallying price higher in order to entice buyers into the market, only later to sell into them, only time will tell though.

4hr Timeframe: Things are becoming really interesting between the ‘normally’ correlated EUR/USD and GBP/USD. Notice with the pound higher prices are being seen on the weekly timeframe just above weekly demand at 1.58533-1.60157, and on the Euro price resembles the same structure (take a look on the weekly chart of the EUR/USD). However, once we zoom down to the pound on the daily timeframe, price is, as already mentioned trading around a daily demand flip area (supply) at 1.62510-1.63401, while on the Euro; price is trading around a notable daily demand area at 1.27541-1.28676, interesting!

Regarding the pound on the 4hr timeframe on the pound, we have removed our pending sell order set just below a 4hr supply (1.63393-1.62791) at 1.62667. Here’s why: If you recall both the Euro and the Pound are seeing bullish interest just above their respective weekly demand areas (1.26591-1.28010/1.58533-1.60157) , and we already have a long position open on the Euro at 1.28936, so selling would be effectively hedging our position here. Granted, the Pound is currently at a daily demand flip area (supply) at 1.62510-1.63401, but as most already know the higher timeframes usually take precedence (both pairs trading around notable weekly demand areas – for the levels, see above), and we totally agree with this. So, regarding the pound, we’re expecting higher prices to eventually be seen sometime soon. We have placed a price action confirmation buy level just above the round number 1.62 at 1.62100, in an attempt to play the retest, we have not set a pending buy order here simply because this level could see a deep test/spike through it, hence buying confirmation is required.

GBPUSD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 1.60112 (Stop loss: 1.59586 Take profit levels(s): Dependent on how price approaches) Price action confirmation levels: 1.62100 (Stop loss: Dependent on price action after the level has been confirmed, Take profit levels(s): Dependent on approaching price action after the level has been confirmed).
  • Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.

 

AUD/USD:

Weekly Timeframe: A break below the weekly consolidation area (0.94600/0.92046) is taking place at the time of writing, could this be just a fakeout to stop out the sellers, or is it really a continuation move in the making?

Daily Timeframe: The daily timeframe clearly indicates the sellers mean business! The daily resistance flip level at 0.91323 has seen a positive daily close below, likely indicating the break below the weekly consolidation area (levels above) is a genuine continuation move, and we should probably be looking for selling opportunities. The next area of ‘trouble demand’ (if this selling continues) is around daily demand at 0.89226-0.89921.

4hr Timeframe: The Aussie has been trading in a bearish manner since the start of the trading week taking out a number of notable support levels in the process. The rebound off of the 4hr resistance flip level at 0.91237 extended up to a 4hr decision-point area at 0.92168-0.91871, which is where our price action confirmation sell level at 0.91853 was triggered, and sellers came back into the market.

In our opinion, if price returns to the aforementioned 4hr decision-point area, a reaction may very well be seen for two reasons:

  1. This 4hr decision-point area is where pro money likely made the decision to break below a very obvious daily resistance flip level at 0.91323.
  2. This area has already been confirmed (as per our price action confirmation sell level set at 0.91853); the requirement to confirm this area was to consume some, or most of the buyers around the low 0.91117 (a pending sell order has now been set in its place).

However, if this selling momentum persists today, and maybe even into next week, the round number 0.9 could soon be seeing some action, since below the round number 0.91 (where price is currently trading at) we see only consumed demand, take note of the obvious-looking tail at 0.90458, this tail likely consumed most of the buyers around this overall area, indicating that if weakness is seen around the round number 0.91, the path is free down to the round number 0.9.

AUDUSD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
  • Areas to watch for sell orders: Pending orders: 0.91853 (Stop loss: 0.92213, Take profit level(s) Dependent on how price approaches). Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.

 

USD/JPY:

Weekly Timeframe: Follow-through buying is currently being seen on the USD/JPY after price broke above the weekly supply area at 105.432-104.065. From here, we see very little on this timeframe stopping price from hitting the heavy-weight weekly supply area at 110.652-108.123.

Daily Timeframe: The daily supply area at 106.946-105.083 has seen a break north, this could very likely attract another round of heavy buying essentially pushing price up to the weekly supply area mentioned already at 110.652-108.123, since all we see above this daily supply area is consumed supply/sellers – just take a look at all those wicks (108.021/109.071/109.166/110.278). However, before this happens, we have to expect the possibility that some sort of correction will be seen. On this timeframe, the nearest area of logical daily demand comes in at 104.674-105.244.

4hr Timeframe: There was clearly some selling going on around the round number 107; we did however expect more of a reaction though possibly bring prices down to at least the 4hr demand area at 106.030-106.241.

At the time of writing, a retest of the round number 107 is taking place, since price recently closed above this level. Call us pessimistic, but we believe the buying currently being seen here above the round number is not likely going to hold, and a retracement will likely ensue down towards at least the minor 4hr demand area at 106.873, if weakness is seen there, a push down to the 4hr demand area at 106.030-106.241 is very likely to happen, where we currently have a pending buy order set just above at 106.288.

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 106.288 (Stop loss: 105.886 Take profit: Dependent on how price approaches). Price action confirmation levels: 105.377 (Stop loss: Dependent on price action after the level has been confirmed, Take profit level(s): Dependent on approaching price action after the level has been confirmed).
  • Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.

 USDJPY 4HR

EUR/GBP:

Weekly Timeframe: A to-the-pip touch was recently seen around weekly supply at 0.81571-0.80635, could this be enough to push prices down into the weekly demand area below at 0.76931-0.78623; it certainly appears that way at the moment.

Daily Timeframe: Upon a break above the very important daily resistance level at 0.80328, we initially expected price would very likely travel up to around daily supply at 0.81515-0.81145. However, a daily support flip level at 0.80635 was a level of clear interest to pro money, since prices rejected this level and has (at the time of writing) travelled over 100 pips south already, obviously a key level to watch for in the future.  If this selling continues, we may see the daily demand area at 0.78905-0.79162 hit sometime soon; this area has already seen a deep touch already making it vulnerable. A weak test here could encourage follow-through selling down to a fresh daily demand area at 0.78117-0.78533, which is conveniently located within the weekly demand area mentioned above at 0.76931-0.78623.

4hr Timeframe: Our short trade taken at 0.80533 is in a fantastic position at the moment. The first two take-profit targets have been hit already (0.80372/0.80126), and at present we are leaving the rest of the position to run. The weekend gap (0.79579/0.79771) has in our opinion been filled, with prices still trading in a bearish manner.  A key level to be watching for bullish activity is the round number 0.79 primarily because it is sitting deep within a daily demand area seen at 0.78905-0.79162, so until price reaches this area, we have no interest in closing our remaining sell position, and are more than happy to sit back and enjoy the ride!

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
  • Areas to watch for sell orders: Pending orders: 0.80533 (Active) (Stop loss: 0.80660 Take profit levels(s): [1] 0.80372 [2] 0.80126, we may take final profit around the round number 0.79 depending on price action). Price action confirmation levels: No price action confirmation sell levels are seen in the current environment.

EURGBP 4HR

USD/CAD:

Weekly Timeframe: Once again, price is currently trading around the weekly supply area at 1.10522-1.09996. Was the initial touch at 1.09967 just to draw the sellers in, only to retrace price back up to this area forcing traders to cover their positions? We have seen this kind of move time and time again, and it usually results in a heavy move being seen.

Daily Timeframe: A beautiful-looking fakeout above daily supply at 1.09967-1.09401 into a small daily supply area at 1.10522-1.10133 (this area is conveniently located within weekly supply at 1.10522-1.09996) was recently seen. Initially, the market had a very bearish tone, however, this clearly was not to be, since aggressive buying is currently taking place from around the 1.09332 level, which will likely force price back up to the daily supply area at 1.10522-1.10133.

4hr Timeframe: Our current sell position taken within 4hr supply (1.10388-1.10163) at 1.10127 recently hit the first take-profit target set just above a 4hr support flip level (1.09311) at 1.09428. It was at this point where we saw the selling pressure beginning to dry up. A stunning to-the-pip bullish reaction was seen off the aforementioned 4hr support flip level bringing prices up to the huge-figure number 1.1, which is where current trading action is taking place. We have no intention of closing out our sell position, since the stop (1.10440) is still in its original position, and currently out of harm’s way.  Our bias on this pair is still south even with the bullish momentum currently being seen, a fakeout above the round number 1.1 may happen, as there are no doubt countless traders going short there, which could bring prices south once again.

USDCAD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 1.08028 (Stop loss: 1.07884 Take profit levels(s): Dependent on how price approaches). Price action confirmation levels:No price action confirmation buy levels are seen in the current market environment.
  • Areas to watch for sell orders: Pending orders: 1.10127 (Active) (Stop loss: 1.10440 Take profit levels(s): [1] 1.09428 [2] To be decided). Price action confirmation levels: No Price action confirmation sell levels are seen in the current market environment.

 

USD/CHF:

Weekly Timeframe: Price is now currently trading around a strong-looking weekly supply area at 0.94546-0.93081. If sellers enter the market here, we can likely expect active buyers to be situated around the weekly flip support level at 0.90927.

Daily Timeframe: After a beautiful bearish reaction around the lower base of daily supply at 0.94546-0.93702, price now seems to be stalling on this timeframe with no real decision being seen yet. If sellers are intent on bringing prices lower from here, we can likely expect active buy orders to be waiting around a small daily decision-point level at 0.93019. Conversely, a break above the daily supply area could very well see prices trading much higher up to around a daily supply area at 0.97505-0.96339.

4hr Timeframe: Considering prices are still seen trading around higher-timeframe supply areas (Weekly supply: 0.94546-0.93081, Daily supply: 0.94546-0.93702) at the moment, we are naturally still favoring shorts for the time being. Our pending sell order set deep within a 4hr supply area (0.93911-0.93746) at 0.93845 was recently filled, and for time being is just in the green.  Our first take-profit target is yet to be hit set at 0.93464, however, with a little patience, we believe it will. If serious buying interest comes into the market around this level, price will likely test the round number 0.94, a break above there would very possibly see price rally up to a fresh 4hr supply area at 0.94546-0.94921 (set very deep within the aforementioned higher-timeframe supply areas, for the levels see above), since there is a clear price void (an area likely free of supply [in this case]) between the round number and this 4hr supply area.

USDCHF 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 0.92635 (Stop loss: 0.92410 Take profit levels(s):  Dependent on how price approaches). Price action confirmation levels: 0.93046 (Stop loss: Dependent on price action after the level has been confirmed, Take profit levels(s): Dependent on approaching price action after the level has been confirmed).
  • Areas to watch for sell orders: Pending orders: 0.93845 (Active) (Stop loss: 0.94078 Take profit levels(s): [1] 0.93464 [2] 0.93051).Price action confirmation levels: No Price action confirmation sell levels are seen in the current market environment.

 

XAU/USD (GOLD):

Weekly Timeframe: At the time of writing, price is trading around a weekly decision-point (support) level at 1244.08. In our humble opinion, it may be time to be locking in profits on any shorts open, and thinking about looking for buying opportunities.

Daily Timeframe: Price has broken below both the daily decision-point level at 1252.02, and the daily demand area at 1238.41-1254.85. This could likely encourage follow-through selling down to around a minor daily decision-point level at 1227.66.

4hr Timeframe: Our pending buy order set just above 4hr demand (1240.92-1244.87) at 1245.52 has been stopped out. Price aggressively broke below the 4hr demand area, and traded directly into a very attractive 4hr demand zone at 1231.56-1235.85, which in itself seems to be a fakeout of the low 1234.09.

Evidently, we have missed the boat on getting in on a touch trade here, but all is not lost. We can wait for price action confirmation. If price breaks above the 4hr decision-point area at 1250.85-1246.33, this will very likely be a signal that higher prices are to come; since most of the sellers will likely be consumed indicating price is free to hit the next area of interest, which in our opinion is around the 4hr resistance flip level at 1257.55. If a signal such as this is seen, we will be setting a pending buy order around the 4hr demand area below at 1231.56-1235.85 awaiting a possible return.

Some may ask, why are we still considering going long when a daily demand area (1238.41-1254.85) has just been broken indicating prices could drop further? To answer this, In our view, price is still trading around an awesome-looking area of weekly demand (a weekly decision-point (support) level at 1244.08), and as most know, the higher timeframes usually overrule the lower, so our bias still remains north for the time being.

GOLD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: No pending buy orders are seen in the current market environment. Price action confirmation levels: No price action confirmation buy levels are seen in the current market environment.
  • Areas to watch for sell orders: Pending orders: No pending sell orders are seen in the current market environment. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.