EUR/USD:

Weekly Timeframe: Strong buying has been seen on the Euro, and as a result, price aggressively broke above the weekly support flip level (1.27541) into a strong-looking weekly supply area at 1.29941-1.28583.

Daily Timeframe: The daily timeframe shows that price is currently trading within a small daily supply area seen at 1.29001-1.28453 (located within the strong-looking weekly supply area mentioned above at 1.29941-1.28583). Assuming a bearish reaction is seen here, the first area of concern for the sellers on this timeframe comes in at 1.27500, a small daily resistance flip level.

4hr Timeframe: As we have already seen on the higher timeframes, strong buying came into the market, which was most likely fuelled by the poor US data announced yesterday. Price broke above both the 1.27 level and the 4hr decision-point area at 1.27894-1.27731, it was only until price reached a minor 4hr Quasimodo resistance level at 1.28667 did selling interest come into the market.

Considering the fact that price is trading within higher-timeframe supply areas (Weekly: 1.29941-1.28583, Daily: 1.29001-1.28453) at the moment, we are naturally expecting to see some sort of sell off in the market. However, In our opinion, selling strength from the higher-timeframe supply areas will only be confirmed once/if price consumes possible buying apposition around the 4hr supply flip area at 1.27894-1.27731 (tentative buy orders seen just above at 1.27939). It is only then would we begin looking for selling opportunities.

4HR

Buy/sell levels:

  • Buy orders: 1.27939 (Predicative stop-loss orders seen at: 1.27661).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

GBP/USD:

Weekly Timeframe: The weekly timeframe shows that price still remains trading within a nice-looking weekly demand area coming in at 1.58533-1.60157; could this area be supportive enough to rally prices higher?

Daily Timeframe: The daily Quasimodo support level (1.58934) seen within a daily demand area at 1.58533-1.59914 was clearly enough to allow buyers to enter the market. Assuming further buying is seen, and the small daily decision-point supply area at 1.61255-1.60498 is consumed, higher prices will very likely follow.

4hr Timeframe: The 4hr timeframe shows that the 4hr demand area seen at 1.58533-1.58915 (located deep within both weekly and daily demand: 1.58533-1.60157/1.58533-1.59914) was supportive enough to allow price to be rallied up to the 1.6 level.

As we can all see a small close above the 1.6 level has been seen. If price retests this level as support, there may be a buying opportunity with good risk/reward targeting at least the 4hr decision-point supply area at 1.61344-1.61035, which is located deep within the small daily decision-point supply area mentioned above at 1.61255-1.60498.

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).

 

AUD/USD:

Weekly Timeframe: There is clear buying interest currently being seen on the weekly timeframe within a weekly demand area coming in at 0.86591-0.88247. Will this be enough to overcome any selling opposition around the 0.88874 level?

Daily Timeframe: Price is currently seen trading between a daily demand area at 0.86183-0.87183, and a daily decision-point supply area at 0.88961-0.88302. Until either one of these areas break, there is no clear direction in our opinion on this timeframe.

4hr Timeframe: The Aussie has recently been very bullish; this again was very likely fuelled by the poor US data announced yesterday. With that being said, selling interest came into the market around a beautiful-looking 4hr supply area seen at 0.88975-0.88614, which is located just within the daily decision-point supply area mentioned above at 0.88961-0.88302.

Taking into account that price is currently trading out of a weekly demand area (0.86591-0.88247) at the moment, we are naturally expecting higher prices to be seen. Be that as it may, we feel price will see a decline down towards the combined 4hr demand/round-number area at 0.86744-0.87235/0.87 (active buy orders seen just above at 0.87297) beforehand. The reason  for which is simply because this combined area of demand appears to be relatively fresh, and as a result will likely contain unfilled buy orders that well-funded traders will likely wish to acquire before a rally higher is seen.

4hr

Buy/sell levels:

  • Buy orders: 0.87297 (Predicative stop-loss orders seen at: 0.86483).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/JPY:

Weekly Timeframe: The weekly timeframe shows that the poor US data announced yesterday likely fuelled further selling out of the weekly supply area seen at 110.652-108.123. As a consequence, this move has brought price down to a weekly resistance flip level coming in at 105.432.

Daily Timeframe: For anyone who follows our analysis regularly, you may recall us mentioning that the daily decision-point demand area at 106.799-107.383 was consumed. Once the sellers were consumed here, this cleared the path south towards another daily decision-point demand area seen at 104.674-105.244. As we can see price did indeed drop like a rock towards the 104.674-105.244 area, where at which point active buyers came into the market.

4hr Timeframe: So. Let’s recap here; price is now trading around a weekly resistance flip level (105.432), which could potentially break since price was aggressively sold from a major weekly supply area (110.652-108.123) only recently. The weekly resistance flip level is supported by a beautiful-looking daily decision-point demand area (104.674-105.244) which, as already mentioned, price has just reacted to. With that being said, the 4hr timeframe shows that price has hit a small 4hr decision-point demand area at 104.962-105.218 (located within the aforementioned daily decision-point demand area), and as a result, further buying was seen up to the 106 level where price is currently trading at the moment. If price breaks above this level and reacts off of a near-term 4hr decision-point supply area seen at 106.391-106.196, it is very likely further selling will be seen back down to at least the aforementioned 4hr decision-point demand area at 104.962-105.218, which will in turn depict buying weakness out of the daily decision-point demand area (104.674-105.244), and also the weekly resistance flip level (105.432) just mentioned above.

On the other hand, assuming price breaks above the aforementioned small 4hr decision-point supply area at 106.391-106.196, this would likely attract further buying up to at least the 107 level, and thus depict buying strength from not only the daily decision-point demand area, but also from the weekly resistance flip level just mentioned.

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).

 

XAU/USD (GOLD):

Weekly Timeframe: Further buying has recently been seen on the weekly timeframe, which consequently pushed prices up to a weekly support flip level coming in at 1244.08.

Daily Timeframe: The daily timeframe shows that if selling interest comes into the market around the aforementioned  weekly support flip level, there is very little stopping price from declining all the way down to a minor daily support flip level coming in at 1206.49.

4hr Timeframe: The weak-looking 4hr supply area at 1239.37-1233.79 was well and truly consumed yesterday. This – like most of the major pairs was likely fuelled by the poor U.S data announced yesterday. What happened after this was no surprise. Selling interest came into the market within an important 4hr supply area at 1250.85-1243.69. The reason for this area’s importance is simply because this is where we believe the decision was made to break below the weekly support flip level at 1244.08, and as a result there were unfilled sell orders left behind.

According to the higher timeframes it is very likely further selling may be seen. We on the other hand will not be convinced until the small 4hr decision-point demand area at 1234.07-1238.94 is consumed, as this could prove to be a troublesome area to break. Assuming this area gets consumed, we will be looking at getting in short as soon as possible, and will likely target the 4hr demand area below at 1217.25-1221.95.

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).