EUR/USD:

Weekly Timeframe: The weekly timeframe shows that the EUR/USD is currently reacting off of a combined weekly demand/Quasimodo support area at 1.22403-1.24420/1.22866. Could we assume further buying will be seen from here? Let’s see what we can find on the lower timeframes.

Daily Timeframe: The daily timeframe reveals that price has broken through a notable daily demand area coming in at 1.24642-1.25616, which at the time of writing appears to be a perfect fakeout spike. With that being said, if we were using just the weekly and daily timeframes, it would be very difficult to judge direction. Price could easily still continue south from here towards either the daily support flip level at 1.24062, or even the daily demand area just below it at 1.22877-1.23809, both of which are still firmly located within the aforementioned weekly demand area.

4hr Timeframe: Price has reacted beautifully around the 4hr resistance flip level seen at 1.24408 (located just within the aforementioned weekly demand area). However, the question we all need to ask ourselves is will price continue higher from here? We believe it could be possible. However, we personally would not be entering long just yet. Confirmation is needed! The 4hr timeframe shows that price appears to have consumed most of the sellers around the round-number level 1.25, and with that, the path north ‘should’ be clear up to the 1.25380 mark. In order for us to buy into this market we would need to see price fakeout below the low 1.24378, as the stops taken from this fakeout would likely fuel further buying.

Therefore, with the above taken into consideration, we have decided to sit on our hands for the time being, and let price action unfold.

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: For the past four weeks now price has been seen trading around a weekly demand area coming in at 1.58533-1.60157. As far as buying is concerned though, we are a bit cautious as there has been very little ‘convincing’  interest shown by the buyers within these four weeks of trading. In fact, we would go as far to say that the GBP/USD looks a right mess on this timeframe at the moment! It will be interesting to see what the lower timeframes show.

Daily Timeframe: The daily timeframe reveals exactly why we are a bit cautious about buying into this market. 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. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows ever since the market opened at 1.59595, price has been consolidating between 1.59529 and the huge psychological number 1.6. In our humble opinion, this type of price action is not safe to trade. We would however be interested in buying if price were to break out of the downward trending channel marked in pink and retest 1.6 as support. This level would provide a nice base to go long from targeting the 1.60871/1.61 area. Be that as it may, in the event that price keeps trading south within the down trending channel, price will very likely hit a 4hr demand area coming in at 1.58533-1.58915 (tentative buy orders are seen just above at 1.58960), which we believe should produce a bounce at the very least, since it is located deep within both the weekly and daily demand areas mentioned above.

4hr

Buy/sell levels:

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

 

AUD/USD:

Weekly Timeframe: The weekly demand area seen at 0.86591-0.88247 continues to receive punishment as the sellers seem to have taken overall control of the market for the time being. A break below here could encourage further selling down to a major weekly demand area coming in at 0.80646-0.84601.

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. It is only until one of these areas sees a positive close; we will then have some idea on future direction.

4hr Timeframe: The market opened 43 points lower than Friday’s close (0.87942) at 0.87503 and continued to trade down towards 0.87, where buying interest was seen coming into the market. This was very likely just short covering here since price continued south after a small bounce. A potential buying opportunity may present itself around the 4hr Quasimodo support level at 0.86622 (tentative buy orders are seen just above at 0.86675), as this in our opinion is the last ‘barrier’ of defense within the two higher-timeframe demand areas (weekly: 0.86591-0.88247, daily: 0.86318-0.87183). That being said though, we would only consider entering long here if we were to see positive lower-timeframe confirmation. We typically watch the 5/15 minute timeframes for this.

4hr

Buy/sell levels:

  • Buy orders: 0.86675 [Tentative] (Predicative stop-loss orders seen at: 0.86369).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/JPY:

Weekly Timeframe: The U.S Dollar continues to appreciate against the Yen, as price is being pushed higher into a major weekly supply area coming in at 114.650-112.530.

Daily Timeframe: The daily timeframe shows that price completely ignored the major daily support flip level at 112.460, and continued to trade higher towards a daily supply area seen very deep within the aforementioned weekly supply zone at 114.650-113.963, where at the time of writing some selling interest appears to be coming into the market.

4hr Timeframe: As we mentioned in the previous analysis. The historical data on this feed does not allow us to see what the price action looks like in the past. Nevertheless, we know that price is currently trading around a daily supply area (114.650-113.963) that is located deep within a major weekly supply zone (114.650-112.530), so we can work from there.

Ever since the market opened at 112.694, the buyers have been in overall control. However, there was a little resistance seen around the 113 level, but clearly not enough to contend with the current buying opposition, as price blew through this level.

In the event that further selling is seen from the aforementioned daily supply area, we see very little stopping price from reaching 113 (tentative buy orders seen just above at 113.095). Now, would we consider entering long here even though price is trading around huge supply at the moment? Yes. The simple reason for this is because we believe price could continue higher, and this would just be an opportunity to ‘buy the dips’. However please do bear in mind we would only enter long IF PRICE WERE TO GIVE LOWER TIMEFRAME CONFIRMATION, since price could very well blow straight through this level for obvious reasons.

4hr

Buy/sell levels:

  • Buy orders: 113.095 (Predicative stop-loss orders seen at: 112.507).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

EUR/GBP:

Weekly Timeframe: Price remains trading relatively deep within a weekly demand area seen at 0.76931-0.78623. However, considering where price is currently located, we have not seen much in the way of buying strength over the past few weeks.

Daily Timeframe: The daily timeframe shows that price continues to decline, as was reported may happen in the previous analysis. We see very little stopping price from hitting a daily demand area coming in at 0.77507-0.77772, which is located deep within the aforementioned weekly demand area. It will be interesting to see what the 4hr timeframe has to say about this.

4hr Timeframe: The 4hr timeframe shows that ever since the market opened at 0.78292, price has essentially been consolidating between 0.78 and 0.78210. A break of this area will be the ‘decider’ regarding where price will likely trade to next in our opinion. Assuming price were to breakout north, this move would likely attract further buying up to at least the 4hr demand swap area seen at 0.78468-0.78595. There may also be an opportunity to buy into this market if price retests this breakout level as support, but one would likely have to be quick to catch this move. On the other hand, if price broke out south, this would potentially see further selling down to a 4hr Quasimodo support level at 0.77840 (tentative buy orders are seen just above at 0.77867), which sits perfectly just above the daily demand area at 0.77507-0.77772. That being said though, we would only enter long here if there was corresponding lower-timeframe confirmation, hence the use of the word ‘tentative’.

4hr

Buy/sell levels:

  • Buy orders: 0.77867 [Tentative] (Predicative stop-loss orders seen at: 0.77637).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/CAD:

Weekly Timeframe: The weekly timeframe shows that price has broken out north above the medium-term weekly high 1.12775. Ultimately, we would like to see the current weekly candle firmly close above this level, as this would likely confirm higher prices will follow up to around a weekly supply area at 1.17225-1.15417.

Daily Timeframe: It was reported in the previous analysis that if a daily candle were to positively close above the high seen on the weekly chart (1.12775), and retest this level as support, we then felt that there is a good chance further buying would indeed be seen. As we can all see, a positive close above has already formed, now all we need is the retest. Let’s see what the picture looks like on the 4hr timeframe.

4hr Timeframe: Price did exactly as expected and no doubt fooled a lot of traders who sold the bearish pin-bar candle that formed on Friday. Once the market opened (1.12776), the buyers did not waste any time and pushed price up to the round-number level 1.13, where a bearish reaction was seen. This move likely got a lot of traders in short, and they were probably quite content until serious buying interest came into the market around 1.12652 and stopped them out at breakeven or even worse a loss. Price is now seen trading around a weak-looking 4hr supply area at 1.13842-1.13352, where a small bearish reaction is currently being seen. In the event that sellers do come into the market here, we do not expect price to drop any further than the 4hr demand area at 1.12624-1.12873, where active buyers are likely waiting around the 1.12916 level (conveniently located around the medium-term weekly high mentioned above at 1.12775).

4hr

Buy/sell levels:

  • Buy orders: 1.12916 (Predicative stop-loss orders seen at: 1.12534).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

USD/CHF:

Weekly Timeframe: The weekly timeframe still shows 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: An average-looking bearish pin-bar candle formed yesterday within a major daily supply area at 0.97505-0.96339 (located within the aforementioned weekly supply area). Does this mean we can expect lower prices down to around a daily resistance flip level coming in at 0.95583? Let’s take a look on the 4hr timeframe and see what we can find.

4hr Timeframe: The market opened 16 points higher than Friday’s close (0.96253) at 0.96422. From there on, the buyers continued to push higher, consequently seeing price spike above a 4hr supply area seen at 0.96876-0.96694, which no doubt stopped a ton of traders out who attempted to fade there. Could this be all the liquidity (buy stops for their sells) pro money require to sell further into this market? It could be possible, but judging how price is currently behaving, we believe they require more liquidity, which will likely result in a push above the psychological level 0.97 being seen. Just above here, there are without a doubt millions of traders trying to fade this level with their buy stops set too close just asking to be stopped out.

A lovely area to enter short at in our opinion would be after the expected fakeout, around the 4hr supply area located just above the aforementioned round-number level at 0.97505-0.97153 (active sell orders are likely set just below at 0.97138). This area also has extra weight, since we mustn’t forget that price is currently trading within both a weekly supply area seen at 0.98378-0.95895, and also the daily supply area coming in at 0.97505-0.96339.

4hr

Buy/sell levels:

  • Buy orders: N/A (Predicative stop-loss orders seen at: N/A).
  • Sell orders: 0.97138 (Predicative stop-loss orders seen at: 0.97535).

 

XAU/USD (GOLD):

Weekly Timeframe: The buyers seen within the weekly demand area at 1156.70-1194.45, are still hanging on in there. With that being said though, we feel this area may get broken sometime soon, and as a result likely attract further selling down towards a small weekly decision-point demand level coming in at 1136.30.

Daily demand: The daily timeframe shows that the buying pressure seen around a fresh daily demand area at 1156.70-1166.05 (located deep within the aforementioned weekly demand area) appears to be very weak at the moment. Let’s see what the 4hr-timeframe picture looks like.

4hr Timeframe: As already mentioned in the previous analysis, we unfortunately do not have the historical data to see what the 4hr timeframe price action is like within the aforementioned higher-timeframe demand areas. Nonetheless, we know that price is currently trading around a daily demand area situated deep within an overall larger weekly demand zone (levels above). So, we can work from there.

Ever since the market opened at 1170.95, gold has been consolidating between 1164.61 and 1174.27. For us to consider buying this market, we would like to see the buyers consume some or most of the selling opposition around a major support flip level seen at 1180.15. We would then begin looking for buying opportunities targeting the 4hr supply area seen above at 1202.61-1195.82, but until that happens, we are forced to remain flat on gold for the time being.

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).