EUR/USD:

Weekly Timeframe: The EUR/USD is in a very tricky spot at the moment. We can all see that price seems to be holding above a weekly support flip level seen at 1.27541, that being said though, going long here would not be wise in our opinion as a strong-looking weekly supply area at 1.29941-1.28583 is seen looming just above like a big-black rain cloud! It will be interesting to see what the lower timeframes have to say.

Daily Timeframe: The daily timeframe shows much the same as the weekly timeframe, only in more detail. Price is currently confined to trading between a small daily resistance flip level seen at 1.27500 (located just below the aforementioned weekly support flip level), and a relatively small daily supply area coming in at 1.29001-1.28453 (located just within the aforementioned weekly supply area). We will only have an idea on future direction once one of these areas gets consumed.

4hr Timeframe: The 4hr timeframe shows that price still remains trading between a minor 4hr Quasimodo resistance level at 1.28667, which is seen just within the daily supply area mentioned above at 1.29001-1.28453 (tentative sell orders are seen just below at 1.28624), and a round-number level coming in at 1.27 (tentative buy orders are seen just above at 1.27042). Could we trade this range? We believe so, but would only be possible in our opinion with lower-timeframe confirmation, as a break could be seen at any time.

With that being said, a break above the aforementioned range would likely force prices to test a 4hr supply area at 1.29295-1.28959, and conversely, a break below would likely attract further selling down towards a nice-looking 4hr demand area at 1.26236-1.26469.

4hr

Buy/sell levels:

  • Buy orders: 1.27042 (Predicative stop-loss orders seen at: 1.26689).
  • Sell orders: 1.28624 (Predicative stop-loss orders seen at: 1.28918).

 

GBP/USD:

Weekly Timeframe: The rebound from the weekly demand area seen at 1.58533-1.60157 extended higher recently, and as such there is a good chance price will hit a very obvious weekly resistance flip level coming in at 1.62591, let’s see what we can find on the lower timeframes.

Daily Timeframe: The daily supply area at 1.61255-1.60498 has been well and truly consumed, and as a consequence cleared the path north up to a daily decision-point supply area seen at 1.62860-1.62109 (located around the aforementioned weekly resistance flip level). However, before price hits this area, there is a strong possibility that we could see a retracement back down towards daily demand at 1.58533-1.59914 (located deep within the aforementioned weekly demand area), which is where price just came from.

4hr Timeframe: The 4hr timeframe shows that as soon as the market opened (1.61010), the buyers essentially took full control. This resulted in the 4hr decision-point supply area seen at 1.61344-1.61035 getting consumed.

In our view, the path north is relatively clear for price to test the combined 4hr supply/round number area at 1.62255-1.61910/1.62 (active sell orders are seen just below at 1.61849), which conveniently sits just below the aforementioned daily decision-point supply area. In the event a bearish reaction is seen here, we feel there is a good chance price will decline down towards a combined 4hr demand/round number area at 1.60789-1.61071/1.61 (active buy orders are seen just above at 1.61126), which is where the next decision will need to be made.

4HR

Buy/sell levels:

  • Buy orders: 1.61126 (Predicative stop-loss orders seen at: 1.60715).
  • Sell orders: 1.61849 (Predicative stop-loss orders seen at: 1.62322).

 

AUD/USD:

Weekly Timeframe: Last week saw the buyers once again attempting to breakout north from the weekly demand area at 0.86591-0.88247, but as you can see the 0.88874 resistance barrier kept the market lower. Could this be a subtle hint that it’s ‘game over’ for this demand area?

Daily Timeframe: The daily timeframe is currently showing indecision, as price is seen trading between a daily demand area at 0.86183-0.87183, and a daily decision-point supply area coming in at 0.88961-0.88302. In our opinion, there is no clear direction on this timeframe until either one of these areas sees a break. Therefore, going long within the aforementioned weekly demand area may not be the best path to take until the daily decision-point supply area mentioned above is consumed.

4hr Timeframe: The 4hr timeframe shows that the 0.88 level is currently providing temporary resistance to the market. If a follow-through to the downside is seen here, active buyers are expected to come into the market around the 0.87297 level, just above a combined 4hr demand/round number area at 0.86744-0.87235/0.87.

Assuming a break above the 0.88 level happens, there could be a short-term opportunity to get long on the retest, targeting the 4hr supply area coming in at 0.88975-0.88614.

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: Last week saw the market react beautifully off of a weekly resistance flip level coming in at 105.432. Is this level really enough to put a halt on the selling that was recently seen out of the weekly supply area above at 110.625-108.123?

Daily Timeframe: The daily timeframe shows that selling interest is currently being seen within a fresh daily decision-point supply area seen at 107.486-106.661. Assuming further selling comes into the market here, lower prices may be seen down to at least a daily decision-point demand area coming in at 104.674-105.244, where a decision will once again have to be made. However, in the event price breaks above this area, any traders that got short around the aforementioned weekly supply area may want to consider closing some or all of their position, since price could trade right back to your entry level.

4hr Timeframe: The 4hr timeframe shows that the market opened a cool 35 points or so above Friday’s close (106.839) at 107.190, which consequently saw price trading within a fresh 4hr supply area seen at 107.486-107.035 (located deep within the aforementioned daily decision-point supply area).

Active selling is currently being seen out of this area of supply, which will likely force price to trade down towards a small 4hr decision-point demand area seen at 106.340-106.614 (tentative buy orders are seen just above at 106.649). Any long trade taken around here should be done so with caution,  and preferably using lower-timeframe confirmation to enter, since we mustn’t forget that the daily timeframe shows a clear path south down to around the 4hr demand area coming in at 104.962-105.218.

4hr

Buy/sell levels:

  • Buy orders: 106.649 (Predicative stop-loss orders seen at: 106.302).
  • Sell orders:  N/A (Predicative stop-loss orders seen at: N/A).

 

EUR/GBP:

Weekly Timeframe: Last week started off looking very positive with serious buying interest being seen out of a weekly demand area at 0.76931-0.78623. However, this was quickly brought to a halt when sellers came into the market around the 0.80328 weekly resistance level. At this point in time, we see very little on the weekly timeframe in terms of future direction, let’s see what the lower timeframes have to say.

Daily Timeframe: The daily timeframe shows that there is a picture-perfect daily Quasimodo resistance level coming in at 0.80351 (seen a few pips above the aforementioned weekly resistance level). This level repelled the market beautifully as expected. If further selling is seen, which at the time of writing appears to be so, then there is very little in our opinion stopping price from reaching the daily decision-point demand area seen below at 0.78468-0.78986.

4hr Timeframe: The market opened ten points or so lower than Friday’s close (0.79228) at 0.79122, which as a consequence saw price trading into a 4hr support level seen at 0.79144. There were clearly some active buyers around this level; nevertheless, it does not appear to be enough to overcome the selling pressure being seen at the moment. As mentioned in the previous analysis, any traders that were thinking of going long around this 4hr support level should have been prepared for price to fakeout below towards the 0.79 level, which in our opinion is likely going to happen soon.

In a like manner, any traders thinking of going long (0.79024) around the 0.79 level would do well to keep in mind the following: round-number levels such as these are prone to deep spikes, which in this case should almost be expected, since there is a daily decision-point demand area (levels above) sitting just below it, so we would advise waiting for lower-timeframe confirmation here, rather than risking a blind limit-order entry.

4hr

Buy/sell levels:

  • Buy orders: 0.79024 [Tentative] (Predicative stop-loss orders seen at: 0.78923).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/CAD:

Weekly Timeframe: Last week shows that the buyers were unable to close above the 1.12775 high. Be that as it may, we still feel that the majority of sellers here were well and truly consumed with that humongous wick coming in at 1.13842, and as a result there is a good chance higher prices could still be seen.

Daily Timeframe: The daily timeframe shows that even though price was unable to close above the 1.12775 high on the weekly timeframe, it certainly did on the daily timeframe, which in our view indicates buying strength.

4hr Timeframe: The Loonie opened around seven points higher than Friday’s close (1.12739) at 1.12813, and ever since then not much movement has been seen, which means much of the previous analysis still remains valid:

With both the weekly and daily timeframes indicating higher prices could be seen, it is only natural to begin looking for buying opportunities. The 4hr timeframe shows that there is room for prices to rally higher up to at least  the psychological number 1.13 (tentative sell orders seen just below at 1.12964). However, we would not be interested in buying until price breaks above, and successfully retests this level as support, as from there it’s very likely further buying could be seen up to the 1.14 psychological level. Why not the 4hr supply area just above at 1.13842-1.13352? The answer is simply because this area of 4hr supply has been hit already been hit, and as such the majority of sell orders are likely already consumed, indicating potential weakness.

4hr

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: 1.12964 [Tentative] (Predicative stop-loss orders seen at: 1.13170).

 

USD/CHF:

Weekly Timeframe: Last week saw selling interest out of a weekly supply area at 0.98378-0.95895. That being said though, active buyers were also seen coming into the market around the 0.93589 level, which forced price to close above a weekly resistance flip level coming in at 0.94546. Was this a fakeout to accumulate liquidity for higher prices, or was it merely to stop out as many buyers as possible to clear the path south for future selling?

Daily Timeframe: The daily timeframe shows that price action is currently confined to trading between a daily supply area at 0.95613-0.94675, and a daily decision-point demand area seen at 0.93522-0.93970. It is only until one of these areas sees a break; we will then likely have some idea regarding future direction.

Concerning the question posed in the weekly timeframe section above, it appears a fakeout has ‘likely’ occurred below the weekly resistance flip level mentioned above, since price traded directly into the aforementioned daily decision-point demand area. Be that as it may, a fakeout in our opinion will only be confirmed once or indeed if price closes above the aforementioned daily supply area.

4hr Timeframe: The USD/CHF pair opened around thirteen points higher than Friday’s close (0.94555) at 0.94686, which as a result saw price once again trading above a small 4hr decision-point supply area at 0.94729-0.94597. We believe that the majority of traders who attempted to fade this area of supply have very likely been consumed now, and as a result  the path north is likely clear up to at least the 0.95 level, where active sellers are likely lurking around the 0.94971 area (located relatively deep within a daily supply area mentioned above at 0.95613-0.94675).

With the current selling activity being seen at the moment, there is a good chance price will hit a 4hr demand area at 0.94048-0.94271, where at which point we expect active buyers to come into the market around the 0.94295 level. Assuming a follow-through to the upside is seen from here, then the first take-profit target in our opinion should be set around the 0.95 level. If any traders are thinking of taking this long trade, do be conscious of the fact that price could very well fakeout below the aforementioned 4hr demand area into the round-number level below at 0.94, so be careful where you place your stop-loss order!

4hr

Buy/sell levels:

  • Buy orders: 0.94295 (Predicative stop-loss orders seen at: 0.93931).
  • Sell orders: 0.94971 (Predicative stop-loss orders seen at: 0.95113).

 

XAU/USD (GOLD):

Weekly Timeframe: The rebound from the weekly demand area at 1156.70-1194.45 extended higher last week up to a weekly support flip level coming in at 1244.08. At this point in time, there appears to be very little selling interest seen around this level. Does this mean higher prices will follow? Let’s see what we can find on the lower timeframes.

Daily Timeframe: The daily timeframe shows that price appears to be standing strong on a small daily resistance flip level seen at 1235.54, which as a result saw price close above the 1244.08 weekly level. Assuming the buyers can hold out above this level, it is very possible we may see prices rally up to a daily supply area at 1277.11-1260.46.

4hr Timeframe: With selling weakness being shown on both the weekly and daily timeframes at the moment, we are certainly not interested in buying this market for the time being.

We feel there is a good chance that the 4hr supply area seen at 1250.85-1243.69 will likely be consumed either today or tomorrow at the latest. This would immediately see price trading around a minor fresh 4hr supply area at 1257.83-1253.54 (tentative sell orders are seen just below at 1252.70). It is here a decision needs to be made.

In the event price consumes this minor area of supply, we can likely assume a rally higher will be seen up to at least a 4hr supply area coming in at 1273.57-1260.70 (located relatively deep within the aforementioned daily supply area). This move at the same time would likely confirm buying strength from the weekly demand area mentioned above at 1156.70-1194.45.

However, if selling interest comes into the market either around the current 4hr supply area (1250.85-1243.69), or the 4hr supply area just above (1257.83-1253.54), this could potentially fuel a decline in value down towards a fresh 4hr demand area seen at 1221.78-1227.37 (active buy orders are seen just above at 1228.35).

4hr

Buy/sell levels:

  • Buy orders: 1228.35 (Predicative stop-loss orders seen at: 1220.96).
  • Sell orders: 1252.70 (Predicative stop-loss orders seen at: 1259.22).