EUR/USD:

Weekly Timeframe: The weekly timeframe shows that the 1.27541 weekly support flip level seems to be holding the market lower for the time being, which as a consequence has forced price to trade relatively deep into a minor weekly demand area coming at 1.24996-1.26262.

Daily Timeframe: A bullish reaction is currently being seen off of a daily demand area at 1.24642-1.25616 (located just within the minor weekly demand area mentioned above at 1.24996-1.26262). However, we would not be interested buyers until the 1.26213 level has been consumed. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: That is just beautiful. Price did exactly as expected. The technical reason why price could drop like this is likely because of the demand/buying opposition to the left had already been consumed (Check out the demand consumption tails around both the green and pink trendlines). Buying interest only came into the market once price reached the 4hr Quasimodo support level at 1.25699 (located just above the aforementioned daily demand area), which pushed price above 1.26 into a 4hr demand swap area seen at 1.26236-1.26469.

Assuming the buyers can hold out above 1.26, this could be enough to entice more buyers to come into the market and push price above the aforementioned 4hr demand swap area. This would be our cue to begin looking for buying opportunities targeting the 1.26835 level (tentative sell orders are seen just below at 1.26791), since we mustn’t forget that both the weekly and daily timeframes are currently supporting higher prices (weekly demand: 1.24996-1.26262, daily demand: 1.24642-1.25616) at the moment.

4hr

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: 1.26791 [Tentative] (Predicative stop-loss orders seen at: 1.27052).

 

GBP/USD:

Weekly Timeframe: For the past few weeks price has been trading around a weekly demand area coming in at 1.58533-1.60157. There has been some buying interest seen here, but nothing to get excited about. A break below would likely attract further selling down to a weekly resistance flip level seen at 1.57166.

Daily Timeframe: The daily timeframe shows why buying interest on the weekly timeframe is not anything to get excited about. Price has been consolidating between a minor daily support flip level seen at 1.61609 and a combined daily demand/Quasimodo support area coming in at 1.58533-1.59914/1.58934 since the 03/10/2014 (located deep within the aforementioned weekly demand area). It is only until one of these areas sees a positive close; we will then have some idea on future direction.

4hr Timeframe: The 4hr timeframe shows that the 1.6 round number was recently breached, and as a result further selling was seen. It seems that the 1.59529 level has provided the GBP/USD a temporary floor which allowed the buyers to come back into the market. However, the only way to find out if this buying was legit, and not just short covering would be for price to hold above 1.6, which as we all can see does not appear to be happening at the moment.

If the above does turn out to be only traders locking in profits from the recent downmove, we then feel there is a good chance price will continue to trade lower down towards the 4hr demand area coming in at 1.58533-1.58915 (active buy orders are seen just above at 1.58960) sometime today. Even though this 4hr demand area has been hit already, it still could be a nice area to look for longs since it is sitting very deep within the aforementioned weekly demand area.

4hr

Buy/sell levels:

  • Buy orders: 1.58960 (Predicative stop-loss orders seen at: 1.58449).
  • Sell orders:  N/A (Predicative stop-loss orders seen at: N/A).

 

AUD/USD:

Weekly Timeframe: At the time of writing the weekly timeframe shows that the buyers attempted to trade out of a weekly demand area at 0.86591-0.88247. This was however unfortunately met with heavy selling around the 0.88874 weekly support flip level pushing price back into demand.

Daily Timeframe: The daily timeframe shows that price has been ranging ever since the 29/09/14 between a daily demand area at 0.86318-0.87183 and a daily decision-point supply area coming in at 0.88961-0.88302 (located nicely around the aforementioned weekly support flip level). With that being said, during Wednesday’s trading sessions, price broke above this range by a few pips; could this be a signal that the buyers are gaining strength? Let’s take a look on the 4hr timeframe to see what we can find.

4hr Timeframe: The 4hr timeframe shows that price closed below the minor low 0.87878, but was unable to reach the combined 4hr demand/round number area at 0.86744-0.87235/0.87 (tentative buy orders are seen just above at 0.87297).

The low 0.87878 has been consumed, and as a result the path south is likely clear down to around the aforementioned  combined 4hr demand/round number area, which has not been hit yet. So, with that in mind, the big guys likely needed more liquidity to sell into this market (buy orders for their sells), so they rallied price higher enticing tons of traders to buy, which they will gladly sell into when the time is right! This rally could very likely continue up until the 4hr Quasimodo resistance level at 0.88809, where we expect active sell orders to be lurking just below at 0.88762. Assuming the above does happen, and a bearish reaction is seen, our first take-profit target would likely be around the 0.87297 area.

With all of the above taken into consideration, we believe that the break out above the daily range (see above) was likely a fakeout, since in our opinion we now have some direction on the 4hr timeframe.

4hr

Buy/sell levels:

  • Buy orders: 0.87297 [Tentative] (Predicative stop-loss orders seen at: 0.86483).
  • Sell orders: 0.88762 (Predicative stop-loss orders seen at: 0.89181).

 

USD/JPY:

Weekly Timeframe: The weekly timeframe currently shows that the buyers are pushing price higher into a weekly supply area seen at 110.652-108.123. Could this be pro money coming back to collect the last of the unfilled sell orders before a more aggressive sell off is seen, or is it truly ‘game over’ for this supply area?

Daily Timeframe: At the time of writing, price is trading around a daily Quasimodo resistance level at 109.449. In the event a daily close above this level is seen, this will likely indicate further weakness within the aforementioned weekly supply area. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows that the 4hr Quasimodo resistance level at 108.524 was recently broken. This level will likely see a reaction if/when price returns to this area, since unfilled buy orders are likely still waiting there.

Selling interest is clearly being seen on this timeframe around the daily Quasimodo resistance level (level above) marked with a blue arrow for reference. Be that as it may, we have to be prepared for price to fakeout above this level into a nice-looking fresh 4hr supply area coming in at 109.893-109.603 (active sell orders are seen just below at 109.566). Assuming the above does happen, we would happily take a short position here targeting 108.524 (ignored Quasimodo level); since there is added weight with any short trade taken at the moment, as price is currently trading very deep within a weekly supply area mentioned above at 110.625-108.123.

4hr

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: 109.566 (Predicative stop-loss orders seen at: 109.931).

 

EUR/GBP:

Weekly Timeframe: The weekly timeframe shows that price remains trading around the base of a major weekly demand area seen at 0.76931-0.78623. Considering just the weekly timeframe for a moment, price has not exactly been showing much in the way of buying strength.

Daily Timeframe: Indecision is being seen on the daily timeframe, as price is still ranging within a daily decision-point demand area at 0.78468-0.78986. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: It was mentioned in the previous analysis that there appeared to be some selling interest seen around the 0.79 level, which could force price back down to the 4hr demand area at 0.78468-0.78595 to collect even more buy orders. As we can all see this has indeed happened. Buy orders have likely been filled around the 0.78601 area, which is exactly where we believe price will rally up to at least the 4hr supply area seen at 0.79409-0.79204. However, before a follow-through to the upside can be seen, price will need to consume any sell orders lurking around the 0.78858 level marked in red, which will likely happen sometime today.

For anyone who does not follow our analysis on a regular basis, the reason we believe price will rally up to the aforementioned 4hr supply area is simply because most of the supply/selling opposition has already been consumed. Check out the green trendline and take note of each time the market made a lower low, price then returned to collect any unfilled sell orders that may have been left behind (marked with blue arrows). This does two things, it allows pro money to keep pushing price south using the unfilled sell orders, but at the same time it also clears the path north for any future buying.

4hr

Buy/sell levels:

  • Buy orders: 0.78601 (LIVE) (Predicative stop-loss orders seen at: 0.78444).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/CAD:

Weekly Timeframe: The weekly timeframe shows that active selling is seen coming into the market, which may have been fuelled from when price stopped out any traders who attempted to fade (and buy the breakout) around the medium-term weekly high at 1.12775.

Daily Timeframe: The daily decision-point demand area seen at 1.11577-1.12209 has been consumed, which as a result likely implies we will be seeing lower prices down to at least the 1.10980 daily resistance flip level sometime soon. At the time of writing price is seen reacting off of a small daily supply area coming in at 1.12630-1.12188, this area seems to be holding price lower for now, but the question we all need to be asking is, will it be strong enough to fuel further selling? Let’s see what the 4hr timeframe has to offer us.

4hr Timeframe: The 4hr timeframe shows that price is currently reacting off of a proven round-number level (1.12); just take a look to the left to see how price behaved around this area in the past. With that being said though, will this level be enough to push prices lower? We believe it could well do, however at the same time we should also be prepared for price to fakeout above to a 4hr supply area (located relatively deep within the small daily supply area mentioned above at 1.12630-1.12188) coming in at 1.12543-1.12335 (active sell orders are seen below at 1.12295). We would personally be happy to sell here targeting the combined 4hr demand/round number area at 1.10807-1.11103/1.11, which sits conveniently around aforementioned 1.10980 daily resistance flip level.

4hr

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: 1.12295 (Predicative stop-loss orders seen at: 1.12611).

 

USD/CHF:

Weekly Timeframe: The weekly timeframe currently shows that price is capped between a weekly supply area coming in at 0.98378-0.95895, and a weekly resistance flip level seen at 0.94546.

Daily Timeframe: The daily supply area seen at 0.95613-0.94675 has been well and truly consumed in our opinion, which as a result likely implies price is free to test a major daily supply area just above at 0.97505-0.96339 (located within the weekly supply area mentioned above at 0.98378-0.95895). That being said though, before price hits this area; we have to be prepared for a reversal down to at least the daily demand area at 0.94405-0.94937, since pro money may not have the liquidity to push prices that high just yet.

4hr Timeframe: The moves seen on the USD/CHF pair should come as no surprise since it is just the opposite of what we have just seen on the EUR/USD.

The strong push north is a beautiful site, and technically the reason price could move with such force is likely because there was very little selling opposition left in the market as most of it had already been consumed in the past (check out both the green and pink trendlines and notice the supply consumption wicks).

The 4hr timeframe shows that the buyers are currently holding out above a 4hr resistance flip level coming in at 0.95540. In the event further buying is seen, this will likely force price to challenge 0.96 once again. A close above this level would be ideal, as we would attempt to enter long on the retest targeting 0.96661 just below the 4hr stacked supply formation seen above (0.97505-0.97153/0.97152-0.96744).

Be that as it may, if the 0.95540 level gives way, then there is not a lot to stop price from testing 0.95 (tentative buy orders are seen just above at 0.95049), which sits beautifully above the aforementioned daily demand area.

4hr

Buy/sell levels:

  • Buy orders: 0.95049 [Tentative] (Predicative stop-loss orders seen at: 0.94866).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

XAU/USD (GOLD):

Weekly Timeframe: The rebound from the weekly support flip level seen at 1244.08 has forced price to test the weekly demand area once again at 1156.70-1195.45.

Daily Timeframe: The daily timeframe shows that gold declined in value for the second day running yesterday, which resulted in the 1206.49 level being breached. As per this timeframe, the path south looks to be clear down to around both the daily Quasimodo support level coming in at 1186.83, and the major daily support level seen just below at 1182.01. However, before this area is hit, we must be prepared for price to retest the 1206.49 level as resistance, since this area likely holds unfilled sell orders left on the break.

4hr Timeframe: The 4hr timeframe shows that the 4hr support flip level seen at 1204.66 (seen just below the 1206.49 daily level) was recently consumed, and as a consequence formed a small 4hr decision-point supply area seen at 1207.55-1204.04.

In our view (much the same as the daily-timeframe analysis), the path south looks relatively free down to around an extreme 4hr demand area coming in at 1178.86-1188.16, which is if you remember is located around two closely-knitted daily support levels (1182.01/1186.83). This could be a perfect area to look for buying opportunities around the 1189.02 level. Nonetheless, before this area is hit, we feel there is a good chance that either today or sometime early next week price will rally up to collect any unfilled sell orders (1203.74) around the aforementioned 4hr decision-point supply area. This will likely give the big guys their much-needed liquidity to sell into this market.

4hr

Buy/sell levels:

  • Buy orders: 1189.02 (Predicative stop-loss orders seen at: 1177.68).
  • Sell orders: 1203.74 (Predicative stop-loss orders seen at: 1208.18).