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: Further buying was seen yesterday giving us the impression that the spike below daily demand at 1.24642-1.25616 was very likely a fakeout. If this is the case, the buyers are very likely free to continue pushing prices higher at least until the 1.26213 mark, where at which point we expect to see active sellers come into the market.

4hr Timeframe: We said in the previous analysis that we would not consider entering long until a fakeout of the low 1.24378 was seen, and as we can all see this did not happen. With that in mind, there was a to-the-pip buying opportunity on the retest of the round-number level 1.25 immediately after it was broken. We hope some of our readers took advantage of this.

At the time of writing, price seems to be reacting off of a small ignored Quasimodo level at 1.25380, following a minor sell off from around the 4hr support flip level at 1.25699. Price could potentially range between these two levels until the Europe session gets under way. Once bigger players enter the market, we anticipate a break lower down to around 1.25, where tentative buy orders are seen just above at 1.25047. That being said though, we must stress that entering blindly around 1.25 may not be the best path to take, since these levels are prone to deep tests/spikes. We would rather wait for lower-timeframe confirmation as this would give us a higher probability that the trade may be a successful one, at least until the next decision point on your chosen timeframe.

4hr

Buy/sell levels:

  • Buy orders: 1.25047 [Tentative] (Predicative stop-loss orders seen at: 1.24669).
  • 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, 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 look like.

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 is consumed; 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 that price is still contained within a downward trending channel (marked in pink), even though a small break was only recently seen, this channel still remains intact in our opinion. Price has not really seen much movement over the past 24 hours, and as such, most of the previous analysis remains valid.

If price were to positively close above this channel, and retest 1.6 as support, we would be very interested in buying, ultimately targeting the 1.60871/1.61 area. However, in the event that price keeps trading south, 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 timeframe shows that there are clearly some buyers left in this market! Check out how price sold off once again breaking the lower limit of the weekly demand area at 0.86591-0.88247, before serious buying was seen. However, this does not give us confidence that prices intend to rally higher just yet, since for the past 5 weeks price has not done anything but consolidate between the aforementioned weekly demand area, and a small weekly support flip level seen above at 0.88874. Let’s see what we can find on the lower timeframes.

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. So, with this in mind, buying may not be the best path to take until the aforementioned daily decision-point supply area is fully consumed, unless of course you have very convincing price action on the lower timeframes.

4hr Timeframe: The 4hr timeframe reveals that there were clearly interested buyers around the 4hr Quasimodo support level at 0.86622. Price broke above 0.87, with no retest seen on this timeframe, and currently shows that the buyers are attempting to push through a minor 4hr supply area seen at 0.87536-0.87319. If they are successful, we see no reason why price cannot hit the 0.88 level above (tentative sell orders are seen just below at 0.87953). Be that as it may, if sellers come into the market here and push prices south towards the 0.87 level (tentative buy orders are seen just above at 0.87044), we may have a potential buying opportunity on our hands. Both the 0.87 and 0.88 are valid trading levels, but please do keep in mind that lower-timeframe confirmation would be required to enter, since psychological levels such as these are prone to deep tests. Also, it would be wise to remember that both the daily and weekly timeframes are showing ranging action at the moment, so targets would be best if kept within the limits of these higher-timeframe ranges.

4hr

Buy/sell levels:

  • Buy orders: 0.87044 [Tentative] (Predicative stop-loss orders seen at: 0.86810).
  • Sell orders: 0.87953 [Tentative] (Predicative stop-loss orders seen at: 0.88124).

 

USD/JPY:

Weekly Timeframe: Active selling is currently being seen within a major weekly supply area coming in at 114.650-112.530. Could this be enough to push prices down to at least the 110.081 level?

Daily Timeframe: The daily timeframe shows that a bearish reaction is being seen around a small daily supply area at 114.650-113.963 (located very deep within the aforementioned weekly supply area). However, in our opinion this could just be traders liquidating their long positions here, the only way to find out if this selling is legit would be for price to break below 112.460, a major support flip level on this timeframe.

4hr Timeframe: Technically, not a lot has changed on this pair and with that most of our analysis remains the same.

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

In the event that further selling is seen, 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? The short answer would be: ‘Yes’. The simple reason for this is because we believe price could continue higher, and this would be an opportunity to ‘buy the dips’. That being said though, please do bear in mind we would only enter long here IF PRICE WERE TO GIVE LOWER TIMEFRAME CONFIRMATION, since we could very well blow straight through this level for reasons mentioned above.

Hopefully in the next 24 hours, more developments will be seen on this pair.

4hr

Buy/sell levels:

  • Buy orders: 113.095 [Tentative] (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. Nevertheless, considering where price is currently located, we have not seen much in the way of buying strength over the past few weeks. Let’s see what the lower timeframes have to say about this.

Daily Timeframe: It was reported in the previous analysis that we felt price had a good chance of reaching the daily demand area below at 0.77507-0.77772, but as we can see it missed it by 10 pips or so! Assuming further buying is seen here, price will likely hit a small daily supply area coming in at 0.79109-0.78797.

4hr Timeframe: Price missed the 4hr Quasimodo support level at 0.77840 by 4 pips! We mentioned in the previous analysis that we felt there would be active buyers present here, but since price never hit the level we unfortunately never even looked for lower-timeframe confirmation.

Current action shows price is trading around a 4hr demand swap area at 0.78468-0.78595. If follow-through buying is seen here, and the swap area is consumed, we may see price hit a small, but notable 4hr supply area at 0.78839-0.78751 (tentative sell orders are seen just below at 0.78731). This is very possible in our opinion considering that price is located within a weekly demand (0.76931-0.78623) area at the moment.

Be that as it may, being prepared in this market is vital. In the event that active selling comes in around current price, we feel there is a good chance price may react off of the 0.78200 level, as we can all see that this was a possible ‘area’ where professional money came into the market, which indicates the possibility that there may be unfilled buy orders remaining there. Would we consider buying here? Without a doubt, but only If nice-looking lower-timeframe confirmation presented itself. We would however rather price trade back down past the 0.78 level to the aforementioned Quasimodo support level, where we still believe active buyers to be present around the 0.77867 level. It would be here we would be looking for any sign of a bullish reversal.

4hr

Buy/sell levels:

  • Buy orders: 0.77867 [Tentative] (Predicative stop-loss orders seen at: 0.77637).
  • Sell orders: 0.78731 [Tentative] (Predicative stop-loss orders seen at: 0.78860).

 

USD/CAD:

Weekly Timeframe: The weekly timeframe shows that price is currently trading 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 may be seen up to around a weekly supply area coming in at 1.17225-1.15417.

Daily Timeframe: Further U.S Dollar buying was seen yesterday on the daily timeframe, which consequently pushed price above the 1.13842 high. We are now going to watch this pair very closely for a retest of this high as support. In the event that it does, it may provide a nice base to look for lower-timeframe price action to go long. However, we  also have to be prepared for this level to break, and further selling be seen down to test the more obvious medium-term weekly high 1.12775 as support. Let’s see what we can find on the 4hr timeframe.

4hr Timeframe: The 4hr timeframe shows that the 4hr supply area coming in at 1.13842-1.13352 was consumed. This should come as no surprise as this area was already weakened by the touch seen on the 16/10/2014 at 1.13601.

The 4hr decision-point demand area at 1.13387-1.13635 is what we have our eye on at the moment. This is where we believe a decision was likely made to break above the daily high (1.13842). This could effectively be a lovely area to go long from around 1.13671. However, we would advise waiting for some confirmation on the lower timeframes before entering long there, as we mustn’t forget that price could indeed continue lower to test the medium-term weekly high (1.12775) as support, which is nicely located around a 4hr decision-point demand area seen below at 1.12624-1.12873 (active buy orders are seen just above at 1.12916).

4hr

Buy/sell levels:

  • Buy orders: 1.12916 (Predicative stop-loss orders seen at: 1.12534) 1.13671 [Tentative] (Predicative stop-loss orders seen at: 1.13314).
  • 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. With that being said, at the time of writing active selling is currently being seen out of the aforementioned weekly supply area.

Daily Timeframe: That average-looking bearish pin-bar candle mentioned in the previous analysis has indeed been proven valid, since yesterday saw further selling. Will this selling continue today down to a small daily resistance flip level at 0.95583? Let’s take a look at the 4hr timeframe picture.

4hr Timeframe: The fakeout above the 4hr supply area at 0.96876-0.96694 was clearly all the liquidity (buys for their sells) the big boys needed to sell into this market. The current trading action shows price aggressively tested/spiked the 0.96 level, which no doubt stopped out a ton of buyers in the process. Low volatility selling was then seen, forcing price to close below this round-number level. Assuming the sellers can hold out below here, we see no reason why prices will not test the 4hr resistance flip level at 0.95540 (Tentative buy orders are seen just above at 0.95577), which is essentially the same as the daily flip level mentioned above. Any traders considering buying here may do well to watch for lower-timeframe confirmation beforehand, as we mustn’t forget that price could blow straight through this level since we are currently trading out of a weekly supply area (0.98378-0.95895) at the moment.

4hr

Buy/sell levels:

  • Buy orders: 0.95577 [Tentative] (Predicative stop-loss orders seen at: 0.95405).
  • Sell orders: N/A (Predicative stop-loss orders seen at: N/A).

 

XAU/USD (GOLD):

Weekly Timeframe: The buyers seen within the weekly demand area at 1156.70-1194.45 are in our opinion just hanging 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: Technically, not much has changed on Gold, as price is still seen consolidating between 1164.61 and 1174.27. As a reminder to anyone who does not follow our analysis on a regular basis, 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.

For this market to get our attention, 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 this happens, we are forced to remain flat on Gold for the time being.

Hopefully in the next 24 hours, more developments will be seen.

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).