EURUSD: 

Weekly view: The weekly timeframe shows that the further upside has forced price to now cross swords with a weekly swap level coming in at 1.1096. Despite this recent bullish activity, our bias still remains south and will continue to do so until we see a convincing push above the weekly supply area seen at 1.1449-1.1278.

Daily view: From this angle, we can see that yesterday’s daily candle closed above the aforementioned weekly swap level and collided with a very strong-looking daily supply area positioned at 1.1244-1.1158.

4hr view: The recent advance saw price take out several 4hr technical levels, which, as you can probably see, only began reducing speed once price met with 4hr supply at 1.1216-1.1168 (located just within the aforementioned daily supply area).

Given that the Euro is currently trading from resistance on each of the above timeframes, naturally we’re more inclined to think ‘short’. Selling now, however, based on where price is trading would not be a trade we’d label ‘high-probability’. The reason for why comes from prices trading only a stone’s throw away from round-number support at 1.1100. Furthermore, this level is also positioned just above the recently broken weekly swap level at 1.1096, so large unfilled buy orders could still be lurking here.

Taking all of the above into consideration, our team has come to a general consensus that no selling shall be considered until we see 1.1100 taken out. Buying from 1.1100 on the other hand, could be a possibility in today’s sessions. However, for us to be convinced active buying is present here, we’d like to see the daily buyers successfully retest the weekly swap level before we commit to any long positions on this pair.

EURO

Our current buy/sell orders:

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

 

GBP/USD:

Weekly view: The weekly timeframe reveals that price recently collided with a strong-looking weekly supply area coming in at 1.5551-1.5391. This recent surge of buying has been the most we’ve seen the pound rally since price began to aggressively sell off back in July 2014. Our bias still remains short on this pair, and will continue to do so until we see price close above the aforementioned weekly supply area.

Daily view: Following the close above the daily swap area seen at 1.5298-1.5208 on Tuesday, follow-through buying was seen yesterday, which consequently forced prices to hit and slightly rebound from a daily Quasimodo resistance level at 1.5478 (located within the aforementioned weekly supply area).

4hr view: The recent buying on the GBP managed to push prices up to the 1.5500 region which was clearly respected as resistance. The sell off from here resulted in price testing the 1.5400 number.

Considering the market’s overall position on the higher timeframe structures (see above), shorting this pair, in our opinion is more favorable. However, selling at current prices would place you against a cluster zone of 4hr support. We have round- number support at 1.5400, 4hr demand at 1.5347-1.5380 and supporting this zone there’s also a proven 4hr swap level coming in just below it at 1.5330. Therefore, our team has deemed selling to be risky at this point in time irrespective of where price is trading on the higher-timeframe picture.

This leaves us with buying. By entering long at either one of the above support barriers just mentioned, you would effectively be buying from potential higher-timeframe opposition. We’re not here to say that the trade would not work out, it could very well turn out to be a fantastic trade, but with the higher-timeframes against you on this one, we would advise waiting for some sort of lower timeframe confirmation signal before risking your hard-earned capital.

POUND

Our current buy/sell orders:

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

 

AUD/USD:

Weekly view: The weekly picture shows price has recently come into contact with a long-term weekly swap level at 0.8064.

Daily view: From the daily scale, we can see that yesterday’s daily candle closed bearishly from its meeting with the aforementioned long-term weekly swap level. Should follow-through selling be seen from here today, we may see prices push towards the daily swap level below at 0.7875.

4hr view: The reaction from the aforementioned weekly swap level is evident. For some, this may be all that’s needed to begin selling this pair. For us, however, we need a little more confirmation. The sell off, as you can see, has pushed prices down to a large round-number support at 0.8000, where, at the time of writing, it seems to be displaying supportive pressure. Selling now would be considered a risky trade in our book, a more conservative approach would be to wait for prices to close below not only 0.8000 but also yesterday’s low marked in green at 0.7975. A clear break below these two numbers would potentially open the gates for an intraday sell down to at least 0.7900.

For anyone considering buying from the 0.8000 today, we would advise waiting for the lower timeframes to prove there is buying strength present before committing yourself here, since let’s not forget that price is currently showing resistive pressure from a higher-timeframe weekly structure (see above) at the moment.

AUSSIE

Our current buy/sell orders:

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

 

USD/JPY:

Weekly view: For the past month or so, the buyers and sellers have been seen battling for position within a weekly demand area coming in at 118.22-119.40. Our bias will remain north on this pair as long as price continues to trade above the weekly swap level seen at 115.50.

Daily view: From the daily scale, we can see that price is resting on top of a daily trendline extended from the low 115.55, which, as you can probably see, also boasts additional supportive confluence from daily support coming in just below it at 118.62 (located deep within the aforementioned weekly demand area).

4hr view: Following on from yesterday’s report, we can clearly see price eventually declined in value and attacked a 4hr Harmonic support zone, more specifically a bullish Butterfly pattern. If one entered long here and took profit at the 0.382 and 0.618 retracements of A – D, you would already be out of the trade with a nice smile on your face. However, if one chose to follow price action you would have likely taken partial profits at the round number 119.00, and moved your stop to breakeven, just as we have. We took a risk trading this pattern as we entered at market (118.64) without waiting for confirmation, but seeing as price is positioned perfectly around not only the aforementioned weekly demand area, but also a daily support level with a converging trendline, we felt it was worth the risk.

Ultimately, we’re going to be watching price action very closely around the 119.00 region today. If price closes above this level, we’d consider moving our stop loss into profit since there’s now additional support in the market. We do not really have a specific second take-profit target per se; we’re merely letting the remainder of our position run as the move from here could eventually be substantial.

YEN

Our current buy/sell orders:

  • Buy orders: 118.64 [Live] (Predicative stop-loss orders seen at: Breakeven).
  • Sell orders: Flat (Predicative stop-loss orders seen at: N/A).

 

USD/CAD:

Weekly view: Following the weekly indecision candle that printed last week within the weekly swap area at 1.2265-1.2092, selling is currently being seen on the weekly timeframe. Should we see prices close below this weekly swap area at the end of the week, the path south will then likely be clear towards a weekly swap level seen at 1.1814.

Daily view: From the daily scale, we can see price is now firmly trading within daily demand at 1.1931-1.2045. This area is also complemented with a Harmonic bullish Bat pattern which completes just below our daily zone at 1.1921.

4hr view: The USD/CAD aggressively sold off during the course of yesterday’s sessions, slamming itself into 4hr demand seen at 1.1931-1.1960 (located deep within daily demand at 1.1931-1.2045), which as you can see held firm, allowing longs to push prices back up to the 1.2000/1.2014 area.

With the weekly timeframe showing room to move further south, and the daily timeframe indicating bulls may come into the market (see above), it’s very difficult to judge direction at this time! Therefore, we’re going to have to let price action tell lead the way… In the event that today’s sessions see price close above the 1.2000/1.2014 area, this may highlight that the path north is free for intraday buying up to the daily swap level 1.2086. However, for our team to buy here, we would need to see price retest this area as support, and at the same time see that lower-timeframe buying strength is present. With regards to selling, no sell positions will be initiated on this pair until prices close below the daily demand area mentioned above at 1.1931-1.2045.

CAD

Our current buy/sell orders:

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

 

USD/CHF:

Weekly view: From the weekly scale, we can see that the weekly support level 0.9512 was recently breached, and as a result prices aggressively sold off. This move has consequently saw the USD/CHF slam dunk itself into a strong-looking weekly demand area coming in at 0.9170-0.9343.

Daily view: Yesterday’s daily candle took out daily demand at 0.9449-0.9545 and attacked the upper limits of a daily demand area seen at 0.9267-0.9334, which, if you look back to the weekly chart, you’ll see is located just within the aforementioned weekly demand area.

4hr view: The recent sell off took no prisoners. Both 0.9500 and 0.9400 were absolutely obliterated. Supportive pressure only came into the market when price hit a 4hr demand area seen at 0.9313-0.9357 (located just within the daily demand area mentioned above at 0.9267-0.9334).

Overall, from the weekly down to the 4hr timeframe this market is in clear demand (see above). However, as you can probably see, price is now testing the underside of the recently-broken round number 0.9400 as resistance, so for us to be convinced that this pair is worth buying, a close above 0.9400 would have to take place. A close above this number would effectively be our cue to begin watching for prices to retest this level as support, since we believe the road north would then be essentially resistance free up to 0.9500.

SWISS

Our current buy/sell orders:

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

 

US 30:

Weekly view: Although the overall trend has been strong since early 2009, a temporary ‘ceiling’ to this index has formed around the 18098 region, and has remained strong for an impressive four months!

Daily view: The buyers and sellers continue to be seen battling for position around the underside of daily supply coming in at 18207-18117. In the event that the sellers are victorious here, the most we see the DOW dropping to is the daily trendline support extended from the low 17033.

4hr view: (As mentioned in the previous analysis, the DOW has been forming what we believe to be a long-term 4hr bullish pennant pattern – upper trendline extends from the 18279 high, while the lower was drawn from 17556).

The recent price action has chiseled out a 4hr consolidation zone between 17949 and 18124 around the upper limit of the 4hr pennant triangle formation. Buying and selling within this range is a possibility for those who prefer to trade within consolidations. For us, however, we’d much prefer to wait for price to breach this range and look to take advantage of any retest seen. With that said, assuming price breaks above and retests this area as support, the runway north would likely be clear all the way up to 4hr supply seen at 18279-18250. The reason we believe prices could move thus far is simply because to the left, we see very little active supply left in this market. Check out the very obvious supply consumption wicks that form our upper limit trendline: 18149/18161/18167. On the other hand, should a break lower be seen, the profit void is certainly not as lucrative as a break higher would be in our opinion, since buying pressure would likely come in around the ascending 4hr trendline that forms the lower limit of the 4hr pennant triangle pattern.

DOW INDEX

Our current buy/sell orders:

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