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 a level, or area is valid for a touch trade.

EUR/USD: 

Weekly Timeframe: At this moment in time, price is seen trading just within a very obvious weekly ‘buy zone’ (1.26591-1.28010). This zone remains an important one to us, since it has provided support to the market on three previous occasions, the first, on the 25/03/13 (1.27497), the second seen on the 13/05/13 (1.27953), and finally the third time was on the 01/07/13 (1.28049). Therefore, we are expecting some sort of a bullish reaction to be seen here.

Daily Timeframe: The daily timeframe shows there is very little active buying being seen within the daily demand area at 1.27541-1.28676, if this continues, we could possibly see a break south towards a notable daily support flip level at 1.26859, which is located deep within the aforementioned weekly ‘buy zone’.

4hr Timeframe: Our pending buy order set just above 4hr demand (1.27541-1.27904) at 1.27970 has been filled. However, at the time of writing, we’re a little concerned as very little buying interest is being seen. Ideally, a break above and retest of the 1.28 level would in our opinion be a positive bullish sign, and would give us more confidence to remain in this trade up to at least 4hr supply at 1.28626-1.28439.

The reasons for taking this buy trade are as follows:

  1. Price is currently trading around higher-timeframe demand (Weekly: 1.26591-1.28010, Daily: 1.27541-1.28676) at the moment.
  2. The 4hr demand area was untouched (fresh), and in our view remains the overall origin of a relatively large uptrend that started on the 09/07/13, so a lot of traders will be watching this area.

EURUSD 4HR

Pending orders/Price action confirmation levels:

  • Areas to watch for buy orders: Pending orders: 1.27970 (Active) (Stop loss: 1.27477 Take profit level(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: 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.

 

GBP/USD:

Weekly Timeframe: A near to-the-pip touch was recently seen off of a weekly decision-point area at 1.66429-1.65340. For the sellers to continue south, they have to overcome possible buying opposition around the 1.62591 level, once, or indeed if this level sees a break, then this would likely encourage further selling down to around a clear weekly demand area seen at 1.58533-1.60157.

Daily Timeframe: The daily timeframe shows price is currently trading in between a daily resistance flip level at 1.62503 (essentially the same as the weekly level just mentioned above [1.62591]), and a daily supply area seen at 1.66429-1.66057, which is located deep within the aforementioned weekly decision-point area.

4hr Timeframe: Technically, not much has changed on this pair, and as a result our view remains very much the same as the previous analysis:

For the time being, trading action is confined between two psychological numbers: 1.63/1.64, a break above would likely encourage further buying up to the 1.65 level, conversely, a break below would almost immediately see price trading around a 4hr demand area at 1.62453-1.62776.

We are personally on the sidelines at the moment regarding this pair, since the higher timeframes in our opinion are providing no ‘clear’ direction. Furthermore, there is no trade to be had on the 4hr timeframe until either the 1.64 level is broken, at which point we would be looking for a retest opportunity, targeting the 1.65 level, or failing that, a break below the 1.63 level, and positive bullish price action being seen around the aforementioned 4hr demand area, as a result, we would likely target at least the 1.64 level.

GBPUSD 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.

 

AUD/USD:

Weekly Timeframe: The recent cascading momentum seen over the past two weeks has brought price down to a weekly Quasimodo support area (0.88189/0.88564), where at the time of writing, a small reaction is being seen. A break below here however, would likely attract further selling down to a weekly demand area seen directly below at 0.86591-0.88247.

Daily Timeframe: The daily timeframe shows the recent buying off of the weekly Quasimodo support area more clearly (levels above). With that being said, this pair is at a point where a decision needs to be made. Price is currently trading around a daily resistance level (prior support) at 0.88874, assuming a close above this level is seen, and it successfully holds, we can be quite confident higher prices are likely to follow. On the other hand, if selling interest comes into the market here, this could very well mean the weekly Quasimodo support area will see a break south, which will consequently see prices trading within a strong-looking weekly demand area sitting just below at 0.86591-0.88247.

4hr Timeframe: On the 4hr timeframe, the recent downtrend is clear with the flurry of lower lows and lower highs seen. However, as already mentioned above, price is now trading around a weekly Quasimodo support area (levels above), and as such, higher prices may very well be seen. Be that as it may, in our opinion, a change in direction has yet to happen, since the 4hr decision-point area at 0.89486-0.89206 has not been consumed. This area of supply is extremely important; this is where the overall decision was likely made to break below a clear daily support level at 0.88874. Therefore if this area is consumed, we will very much be expecting higher prices up to at least the 0.9 level, which we will try to take full advantage of, if/when the time comes.

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: 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.

 

USD/JPY:

Weekly Timeframe: Price is currently seen trading relatively deep within a weekly supply area at 110.652-108.123. We will now be primarily looking for selling opportunities. However, in the event a buy trade presents itself, extreme caution will be taken regarding trade management, and risk.

Daily Timeframe: Keeping in mind the weekly timeframe currently shows price trading deep within weekly supply (levels above). The daily timeframe on the other hand shows price broke above and successfully retested the 108.421 level, not once, but twice (108.241/108.448), is this an early sign that price may trade deeper into the aforementioned weekly supply area? Be that as it may, the next area/level of interest on the horizon (resistance) is coming in at 110.390 (daily Quasimodo), where, if prices reach that high, we fully expect active sellers to come into the market, since this level sits very deep within the aforementioned weekly supply area.

4hr Timeframe: The 4hr timeframe is currently showing price trading around the 109 level, indicating the two tests of daily support at 108.421 do not have much creditably YET. The reason for this is very simple when we think about it logically, all price has effectively done is trade into the 109 level, we agree that this level will likely see a break north since the daily timeframe holds more weight, but waiting for that break is what’s important in our opinion. Once, or indeed if price successfully closes above the 109 level, and holds, we can be confident we may have a buying opportunity targeting the 110 level at least. Nevertheless, we mustn’t forget that price is still trading within a weekly supply area (110.652-108.123) at the moment, so extra care would have to be taken regarding risk and trade management if any buy trades are indeed executed.

USDJPY 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.

 

EUR/GBP:

Weekly Timeframe: The EUR/GBP is now trading around serious weekly demand seen at 0.76931-0.78623. Overall, our bias for this pair is very much long, with the expectation of buyers rallying prices higher up to at least the weekly supply area at 0.81571-0.80635.

Daily Timeframe: Last week shows price reacted beautifully off of a daily demand (part of a stacked demand formation) area seen at 0.77894-0.78271, forming a bullish pin-bar candle in the process. Most of the traders who went long just above this pin-bar candle have likely already been filled, and at the time of writing are probably suffering from serious drawdown. This is why when we see a pin-bar candle such as this; we always look to the lower timeframes for more information, which normally saves one from unnecessary drawdown, such as what is being seen at the moment.

4hr Timeframe: The 4hr timeframe shows (weak) selling interest is currently being seen from the 4hr supply area at 0.78963-0.78777. We fully expect fresh buyers to come into the market around either the 4hr Quasimodo support level at 0.78269, where we have a price action confirmation buy level set just above at 0.78291, or the round number 0.78, where we have also set a price action confirmation buy level just above at 0.78026. The reasoning behind this is simple; price is currently trading not only within daily demand (0.77894-0.78271), but also weekly demand (0.76931-0.78623) as well, indicating higher prices are more favorable for the time being.

EURGBP 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: 0.78026 (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) 0.78291 (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: 0.79882 (Stop loss: 0.80103 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/CAD:

Weekly Timeframe: At the time of writing, buyers and sellers are seen trading between a weekly decision-point support level at 1.08774, and a weekly Quasimodo resistance level at 1.12231. A break above here could potentially see prices trading up to at least the weekly supply area seen at 1.17225-1.15417; conversely, a break below the weekly decision-point support level could encourage follow-through selling down to around a very obvious weekly demand area seen at 1.05715-1.07008.

Daily Timeframe: The daily timeframe shows price is currently trading very deep within daily supply at 1.10980-1.10344. Assuming a break above here is seen, this would likely attract further buying up to around a daily Quasimodo resistance level at 1.11910, which is only 32 pips or so below the weekly Quasimodo resistance level (1.12231).

4hr Timeframe: The 4hr fresh supply area at 1.10706-1.10550 has been well and truly consumed, meaning the path north is likely clear for price to now test the combined 4hr supply/round number area at 1.10872-1.11033/1.11. With that being said, this area appears to have already seen a deep touch (15/9/14) at 1.10970 indicating possible weakness, and suggesting this area will possibly be consumed as well. A close above the 1.11 level would likely encourage follow-through buying up to the next area of fresh (untouched) 4hr supply seen at 1.11681-1.11392.

USDCAD 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.

 

USD/CHF:

Weekly Timeframe: At the time of writing, the weekly timeframe shows price is trading deep within weekly supply at 0.94546-0.93081. Should this pair see a sell off, we can likely expect active buyers to come into the market around a notable weekly resistance flip level at 0.90927.

Daily Timeframe: The recent push seen deeper into daily supply at 0.94546-0.93702 only tells us that both this supply area, and the weekly supply area at 0.94546-0.93081 are likely beginning to weaken. With that being said, no decision (in our opinion) has yet to be made on this pair regarding higher-timeframe direction, except for the fact, price is currently trading within higher-timeframe supply areas (levels above), and therefore lower prices should be expected.

4hr Timeframe: Our pending sell order set just under the 4hr supply area (0.94202-0.93972) at 0.93931 has recently been filled. Our reasons for selling are as follows:

  1. Price is currently trading within higher-timeframe supply areas (Weekly: 0.94546-0.93081, Daily: 0.94546-0.93702) at the moment.
  2. The low marked with the blue arrow at 0.93774 was consumed, which possibly cleared the path south down to the 0.93344 level.
  3. We entered at 4hr supply (0.94202-0.93972), which is where we believe the overall decision was made to initially push prices below the low 0.93774, indicating there would likely be unfilled sell orders still lurking around there.

With that being said, the reaction currently being seen around the aforementioned 4hr supply area does not exactly fill us with confidence, since price has been ranging for 16 hours now!

USDCHF 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: 0.93931 (Active) (Stop loss: 0.94233, Take profit level(s): 0.93344. Price action confirmation levels: No price action confirmation sell levels are seen in the current market environment.

 

XAU/USD (GOLD):

Weekly Timeframe: Price closed below the weekly decision-point level (1244.08) on the 08/09/14, with price seen retesting it as an area of resistance a week later. Could this be all the sellers need to push prices down to weekly demand at 1156.70-1194.45?

Daily Timeframe: At the time of writing, current trading action is capped between a daily decision-point supply area at 1241.95-1235.34, and a daily support flip level at 1211.67. However, with price action on the weekly timeframe currently showing price successfully testing a weekly resistance area at 1244.08 (prior support), we feel the 1211.67 level will see a break south, which will likely encourage further selling down to a daily Quasimodo support level at 1186.83, which is conveniently located within the weekly demand area mentioned above at 1156.70-1194.45.

4hr Timeframe: After reviewing the higher-timeframe charts once again, it is quite possible the move seen on the 23/09/14 at 1235.54 was very likely a fakeout, since the signal to go lower was seen on the 22/09/14 at 1207.88. What we mean by signal, is simply that the buyers are likely consumed around the 4hr support flip level at 1211.12, potentially clearing the way down to at least the 1194.38 level, a 4hr Quasimodo support. We have set a price action confirmation buy level just above here at 1196.01, since a reaction is very likely, as this level is sitting just within the weekly demand area mentioned above at 1156.70-1194.45. The reason we have not placed a pending buy order is simply because price could ignore this level, and trade on down to the higher-timeframe daily Quasimodo support level (1186.83) instead, for the reason that this is the more prominent out of the two levels.

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: 1196.01 (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.