EUR/USD:

Weekly Timeframe: Last week’s weekly candle shows that selling interest came into the market around the weekly support flip level seen at 1.27541, and as a result this forced the market to close the week out at 1.26262. If follow-through selling is seen this week, price could very well hit a combined weekly demand/Quasimodo support area coming in at 1.22403-1.24420/1.22866.

EURUSD WEEKLY

Daily Timeframe: The daily timeframe shows that further selling is very possible, as there seems to be very little stopping price from once again challenging the daily demand area at 1.24642-1.25616.

EURUSD DAILY

4hr Timeframe: The 4hr timeframe shows that the Euro dropped around 100 points on Friday from the 1.27 level down to just above the 1.26 level, where at which point two buying tails formed (1.26080/1.26043) just before the market closed for the week.

Either today or sometime during the week, we believe that the 1.26 level will indeed be consumed, and as a consequence will clear the way for price to challenge the 4hr Quasimodo support level coming in at 1.25699. Assuming buying interest is seen here, it will (in our opinion) not be enough to compete with the sellers, which will likely encourage further selling down towards the (weak) 4hr demand area seen at 1.25005-1.25362. The reasoning behind our thinking is simply because both the weekly and daily timeframes are indicating that continuation selling is very possible for the time being (see above). Therefore taking all of the above into consideration, going long is not a viable option for us, and for the moment, we see no entry to go short. So, as a result we remain flat on this pair.

EURUSD 4HR

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

GBP/USD:

Weekly Timeframe: Like the EUR/USD – last week the British pound did in fact start off looking very bullish trading out of a weekly demand area seen at 1.58533-1.60157. This buying was quickly brought to a halt though when active selling was seen around the 1.62234 level, which as a result forced the market to close the week out at 1.60705.  Could this selling just be where buyers are clearing out any potential sell orders to move prices higher, or is it game over for this weekly demand area?

GBPUSD WEEKLY

Daily Timeframe: The Daily timeframe shows that price is capped between a major daily support flip level coming at 1.62503, and a daily demand area seen at 1.58533-1.59914 (located deep within the weekly demand area mentioned above).Until either one of these areas sees a break, there is no direction in our opinion. However, there are still very likely opportunities to trade the limits of these areas, personally though we would prefer to see some sort of break and retest.

Daily

4hr Timeframe: There was clear selling interest seen around the 1.62 level last week, and as a result saw the market drop over 200 points! Buyers were seen however coming into the market a few pips above the 1.60 level just before the market closed out for the week (1.60705).  With that being said, it is very difficult to know whether this buying interest was legit, or just simply traders liquidating their short positions.

So, what do we see happening this week? It is likely further buying will be seen up to the combined 4hr decision-point/round-number area at 1.61344-1.61035/1.61 (active sell orders likely set just below at 1.60940), since there seems (in our view) to be very little supply/selling opposition above current price. From here a decline in value will likely follow down towards the 1.60 level. There are no doubt countless buy orders set here with stop-loss orders set just below, which well-funded traders are surelyl aware of! With that in mind, a nice fakeout below this level will most probably be seen down into a beautiful fresh 4hr demand/fakeout area at 1.59506-1.59770, and it is here we expect a nice rally higher to be seen from the 1.59824 level.

4HR

Buy/sell levels:

  • Buy orders: 1.59824 (Predicative stop-loss orders seen at: 1.61605).
  • Sell orders: 1.60940 (Predicative stop-loss orders seen at: 1.61423).

 

AUD/USD:

Weekly Timeframe: The weekly timeframe shows that serious selling came into the market last week within a weekly demand area at 0.86591-0.88247, which as a result saw the weekly candle close near its lows (0.86513) at 0.86820. We feel this area has been consumed now so follow-through selling could be seen down towards a larger weekly demand area coming in at 0.80646-0.84601.

Weekly

Daily Timeframe: The daily timeframe shows exactly why a sell off was seen last week, and it comes in the form of a daily decision-point supply area coming in at 0.88961-0.88302. A deep test of this area has forced the buyers to take a back seat on this one, as the sellers drove price deep into a (weak) daily demand area seen at 0.86183-0.87183. Let’s take a look at the 4hr timeframe to see what else we can see.

Daily

4hr Timeframe: As per the 4hr timeframe, the only support barrier left within both the weekly and daily demand areas (levels above) is a 4hr Quasimodo support level seen at 0.86629 (active buy orders seen just above at 0.86692), since all other prior areas of demand have already consumed.

However, this 4hr Quasimodo support level should not be underestimated in our opinion, as this level lines up perfectly with a major low to the far left seen at 0.86591, and as such, we are expecting some sort of reaction to be seen here. If any traders are considering entering long here it may be a good idea to recognize that the 0.87 level is looming just above, so, waiting for a close above this level as a way of confirmation first is likely the best path to take.

However, assuming a close below this 4hr Quasimodo support level is seen, we think it may be the end of the road for the buyers, since the path south is likely free to drop down to at least the 0.86 level, which if you remember is a little below both the aforementioned higher-timeframe demand areas.

4hr

Buy/sell levels:

  • Buy orders: 0.86692 (Predicative stop-loss orders seen at: 0.86346).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/JPY:

Weekly Timeframe: The weekly timeframe shows that a full-bodied bearish candle formed within a major weekly supply area at 110.652-108.123 last week. Assuming further selling is seen, we can likely expect prices to trade down to at least the weekly resistance flip level coming in at 105.432.

Weekly

Daily Timeframe: With the weekly timeframe showing bearish intentions, the daily timeframe on the other hand shows that a daily decision-point demand area at 106.799-107.383 will have to be consumed before any further selling is seen.

daily

4hr Timeframe: Thursday’s action saw the sellers close below the 108 level, which subsequently saw price retesting it as resistance not once, but twice. Assuming price can close below the low seen marked with a blue arrow at 107.519, it is very likely we will see a decline down to a combined 4hr demand/round-number area at 106.799-107.048/107. It would be here that we would expect active buyers to come into the market around the 107.126 level, since this area sits deep within the daily decision-point area mentioned above at 106.799-107.383.

However, even though we are expecting a reaction to be seen at the 107.126 level, we still have to be prepared for price to continue south as we mustn’t forget that price is currently trading out of a major weekly supply area at the moment (110.652-108.123).

4HR

Buy/sell levels:

  • Buy orders: 107.126 (Predicative stop-loss orders seen at: 106.737).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

EUR/GBP:

Weekly Timeframe: The weekly timeframe shows that the buyers and sellers are still battling it out within a major weekly demand area coming in at 0.76931-0.78623. As per this timeframe, the buying interest seems to be weak considering its current location.

Weekly

Daily Timeframe: The reason for the weak buying seen out of the aforementioned weekly demand area can be seen on the daily timeframe. Check out the three selling wicks (0.78984/0.78938/0.78936) seen around the 0.78729 level. Only once this level is consumed (daily close above) – can price then in our view continue higher. At the time of writing, we see very little stopping price from trading all the way back down towards the daily demand area for the second time at 0.77507-0.77772, which is located relatively deep within the major weekly demand area mentioned above at 0.76931-0.78623.

daily

4hr Timeframe: By looking at the 4hr timeframe, we can see that the combined 4hr supply/round number area at 0.79133-0.78886/0.79 is what seems to be (in our opinion) stopping further buying out of the weekly demand area at 0.76931-0.78623. We can now see that the three selling wicks seen on the daily timeframe above the 0.78729 level were indeed fakeouts to this combined 4hr area. Beautiful price action!

With the above taken into consideration, this week will likely begin with price trading into a 4hr demand area at 0.78271-0.78399, where a reaction could indeed be seen. However, we shall not be buying here since we feel this area has already been weakened by the touch seen on the 07/10/14 at 0.78357. The market will likely continue trading south bouncing off of all the minor areas of demand until it reaches the 4hr Quasimodo support level seen at 0.77840 (active buy orders are seen just above at 0.77876). Why this level? Well, If you remember from the daily-timeframe analysis, price was relatively free to trade down to an area of daily demand (0.77507-0.77772), and seeing that the 4hr Quasimodo support level is sitting just above this daily demand area coupled with the fact that price is trading within a weekly demand area (0.76931-0.78623) at the moment, it is very likely a high-probability buying opportunity.

4hr

Buy/sell levels:

  • Buy orders: 0.77876 (Predicative stop-loss orders seen at: 0.77618).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/CAD:

Weekly Timeframe: In view of the fact that price was trading around a medium-term weekly high (1.12775) last week, the selling interest was not exactly convincing. In fact, just looking at only the weekly timeframe action, we would be worried if we were sellers at the moment.

WEEKLY

Daily Timeframe: With regards to the selling weakness currently being shown on the weekly timeframe at the moment. We can see here on the daily timeframe that price reacted beautifully to a daily decision-point demand area coming in at 1.10521-1.10826, and until the buying interest here is consumed, no lower prices will be seen.

daily

4hr Timeframe: Thursday’s trading action shows that there were clearly enough active buyers around the 1.11 level for price to rally over 100 points up to the 1.12 level. Selling interest was clearly seen coming into the market here on Friday in the form of a beautiful array of spikes/wicks!

However, we feel that anyone considering shorting here should be careful, since these selling wicks could just of been traders liquidating their long positions before the market closed for the week. So with that being said, two things can happen from here in our opinion:

  1. Price continues to rally up to a 4hr supply area seen at 1.12697-1.12415 (active sell orders likely set just below at 1.12380), and as a result price would then be trading within the daily supply area at 1.12775-1.12361, where we believe things would get very interesting indeed.

 

  1. Further selling  from the 1.12 level could see price declining all the way down to a 4hr Quasimodo support level coming in at 1.11104 (active buy orders likely set just above at 1.11129).

If anyone is thinking of trading the 4hr Quasimodo support level blindly (limit orders), we would advise waiting for lower-timeframe confirmation, as price could spike right though both this level, and the 1.11 level into a 4hr demand area seen at 1.10521-1.10758.

4hr

Buy/sell levels:

  • Buy orders: 1.11129 (Predicative stop-loss orders seen at: 1.10891).
  • Sell orders: 1.12380 (Predicative stop-loss orders seen at: 1.12759).

 

USD/CHF:

Weekly Timeframe: Last week shows that active selling was seen out of a weekly supply area at 0.98378-0.95895. That being said though, buying interest also came into the market as price came within a few pips of hitting a weekly resistance flip level at 0.94546. In our opinion, on this timeframe there is no clear direction until either one of these areas is broken.

Weekly

Daily Timeframe: Price successfully broke below a daily decision-point demand area seen at 0.95163-0.95581 on Thursday, which likely indicates that the path south is clear down to at least the daily decision-point demand area at 0.93522-0.93970. Be that as it may, this does not mean we are recommending hitting the sell button just yet! What it does mean however is we should be patient, as this break below the 0.95163-0.95581 area could very well just be a fakeout into the weekly resistance flip level mentioned above at 0.94546.

Daily

4hr Timeframe: The 4hr timeframe shows that over the course of Thursday and Friday, buying interest came into the market from the 4hr demand area at 0.94587-0.94785, and as a result price rallied a little over 120 points.

With that being said, just before the market closed out for the week (0.95626), price broke above the high 0.95881. In our opinion this is an important signal. The pink area from the high just mentioned, up to the high 0.96236 is a consumed supply area. Take a look inside the zone and check out the supply consumption wicks seen at 0.95965/0.95996/0.96106.

So, if we assume most of the sell orders are consumed around the 0.95881 level, this likely leaves the path north clear up until at least the 0.96236 level. However before we all go hitting the buy button, we must be prepared for prices to decline down to at least the 0.95315 level (active buy orders likely set just above at 0.95337), as the big guys may not have the liquidity (sell orders for their buys) to push prices higher just yet.

4hr

Buy/sell levels:

  • Buy orders: 0.95337 (Predicative stop-loss orders seen at: 0.95210).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

XAU/USD (GOLD):

Weekly Timeframe: The weekly timeframe shows that active buying interest was seen out of a weekly demand area at 1156.70-1194.45 last week. Assuming further buying is seen sometime this week, we can likely expect price to test the weekly support flip level coming in at 1244.08.

Weekly

Daily Timeframe:  The daily timeframe on the other hand shows that price has traded right into a daily supply area seen at 1241.95-1231.52. For higher prices to be seen, any selling opposition will have to be consumed here first.

daily

4hr Timeframe: Thursday’s trading action shows that active selling came into the market just before the 4hr supply area seen at 1239.37-1233.79 (located just within the daily supply area mentioned above at 1241.95-1231.52). With that being said, further selling was seen on Friday which broke below the1222.41 level, while a few hours later was  retesting it as resistance.

In our opinion, the path south appears relatively clear down to the 4hr Quasimodo support area coming in at 1204.42-1206.24 (active buy orders likely set just above at 1207.01), located just below a small daily support level coming in at 1206.49. This is where we feel serious buying will be seen, for the simple reason that price is currently trading out of a weekly demand area (1156.70-1194.45) at the moment, and as most already know, the higher timeframes usually take precedence over the lower.

4hr

Buy/sell levels:

  • Buy orders: 1207.01 (Predicative stop-loss orders seen at: 1202.18).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).