EUR/USD: Technical outlook and review.

2014년 8월 14일

4hr TF

The higher-timeframe picture resembles the following:

• Weekly TF: Price still remains relatively deep within weekly demand at 1.32940-1.34847, and at the time of writing there appears to be little interest seen from the buyers. A break below this area could force prices to test the weekly demand area at 1.31037-1.32262.

• Daily TF: Buyers and sellers remain trapped for the time being between a daily level of interest below at 1.33559, and a daily decision-point area above at 1.34433-1.34202.

Price is really toying with our current long position at 1.33526, as price once again pushed higher hitting the round number 1.34, then dropped back down to the 4hr demand area at 1.33360-1.33619 where price remains trading for the moment.

Something interesting has been spotted with these current price movements, take a look at the green down trend line, yes, we know this highlights the fact that price is trending south, but it also represents what pro money’s likely intentions are for the future. Notice how every time a decline was seen, price then rallied back up to collect sell orders for yet another push to the downside, however clearing out the sell orders also clears the path north for any future buying which is highly likely at the moment, as let’s not forget, price is currently trading within a weekly demand area (levels above), so higher prices are naturally expected. For buying strength to be proved however, we need to see a break above the 4hr decision-point area at 1.34433-1.34305, as this will also mean the daily-decision-point area (levels above) has been consumed also, so we can then expect higher prices at least up to the next fresh supply areas on the respective timeframes (Daily: 1.34760-1.35265, 4hr: 1.34760-1.34943).

Pending/P.A confirmation orders:

• The pending buy order (Green line) set within 4hr demand (1.33360-1.33619) at 1.33526 is now active, Our first take-profit level was hit at 1.34, so do keep an eye on our second and final take-profit level set at 1.34305.
• No P.A confirmation buy orders (Red line) are seen in the current market environment.

• Pending sell orders (Green line) are seen just below the 4hr D/S flip area (1.34760-1.34943) at 1.34753.The reasoning behind setting a pending sell order here was because this is the area we believe on this timeframe pro money sellers made the decision to push prices south into (what was at the time) 4hr demand at 1.33984-1.34404, with the possibility of unfilled sell orders still waiting there.
• No P.A confirmation sell orders (Red line) are seen in the current market environment.

• Areas to watch for buy orders: P.O: 1.33526 (Active) (SL: 1.33280 TP: [1] 1.34 [2] 1.34305). P.A.C: No P.A confirmation buy orders are seen in the current market environment.

• Areas to watch for sell orders: P.O: 1.34753 (SL: 1.35031 TP: Dependent on price approach). P.A.C: No P.A confirmation sell orders are seen in the current market environment.