EUR/USD Selling is the name of the day!

2014년 7월 23일

4hr TF.

The higher-timeframe picture resembles the following:

• The sellers at this point in time seem to have broken the weekly demand area at 1.34760-1.36314, as a result price has dropped into the next weekly demand area directly below at 1.32940-1.34847 (Stacked demand).

• The daily timeframe shows that the sellers have pushed below the daily demand area at 1.34760-1.35265. Price will very likely now test the daily demand area below at 1.33984-1.34397.

Selling, selling and more selling! Pro money sellers have broken the 4hr demand at 1.34760-1.34943, price is now very likely going to test the 4hr demand below at 1.33984-1.34404 as there is very little to the left that will likely stop price from doing so.

This selling momentum could very well continue on to the next aforementioned 4hr demand area without a retracement seen, nonetheless price could very well reverse up to either the 4hr decision-point area at 1.35286-1.35211 (an important area as this is where pro money sellers made the overall decision to break the 4hr demand area at 1.34760-1.34943) or a 4hr decision-point area further up at 1.35714-1.35609, so do be prepared for that. The reasoning behind our thinking is that pro money may need liquidity to drop price further so a rally higher will give them the opportunity to manipulate price action to gain the much-needed liquidity (in this case buy orders for pro money sell orders).

Pending/P.A confirmation orders:

• The pending buy order (Green line) set just above demand (1.34760-1.34943) at 1.34966 has been stopped out.
• New pending buy orders (Green line) are seen just above demand (1.33984-1.34404) at 1.34434. Once/if price reaches the aforementioned demand area; a bullish reaction is very much expected as we will be trading at the base of daily demand (1.33984-1.34397) as well.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• The pending sell order (Green line) set just below the decision-point supply area (1.36632-1.36485) at 1.36416 has been cancelled, for the time being price is too far from the entry level.
• Pending sell orders (Green line) are seen just below the 4hr decision-point area (1.35714-1.35609) at 1.35596. The reason a pending sell order was allocated here is because this is where pro money (on this timeframe) possibly made the decision to sell price into (what was) the 4hr demand (1.35018-1.35375) area at the time.
• New pending sell orders (Green line) are seen just below a decision-point area (1.35286-1.35211) at 1.35194. We have decided to place a pending sell order here because price could very well rally to this area before dropping further south.
• The P.A confirmation sell order (Red line) set just below supply (1.37224-1.37028) at 1.36894 has been cancelled, for the time being price has dropped too far away from the entry level.

• Areas to watch for buy orders: P.O: 1.34434 (SL: 1.33942 TP: Dependent on price approach) P.A.C: No P.A confirmation buy orders are seen in the current market environment.

• Areas to watch for sell orders: P.O: 1.35194 (SL: 1.35319 TP: Dependent on price action approach) 1.35596 (SL: 1.35768 TP: Dependent on price approach). P.A.C: No P.A confirmation sell orders are seen in the current market environment.