General Forex Updates - page 2

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GBPUSD - The last analysis reported that we are favoring a break of the 4hr demand area at 1.69512-1.69708 which would in all likelihood push prices down to at least the round number 1.69. Our reasoning behind thinking this is due to the heavy selling currently being seen in weekly supply (see above for the levels) at the moment. The tail marked with an arrow represents possible demand/buyer consumption, meaning the path south may be clear below to the aforementioned round number. In addition to this, it would make perfect sense for pro money sellers to break the aforementioned round number (another reason why we only placed a P.A confirmation order here) and push prices even further south down to a 4hr decision-point area at 1.68013-1.68585, which is conveniently located just above daily demand at 1.67989-1.67367, so do keep an eye on this area for a possible bullish reaction in the near-term future.

 

AUDUSD 4hr -Buyers and sellers are now currently seen battling it out around the round number 0.94. If we see a break above the round number, price appears relatively free up to at least the 4hr decision-point level at 0.94408. The reason for this is simply because of those two wicks marked with arrows; supply may well have been consumed by those very two wicks meaning the path north should be clear.

 

USDJPY - The market opened up at 101.769, the sellers then made a pathetic attempt to trade below the 4hr decision-point level at 101.754, but were quickly stopped as the buyers then took over pushing prices higher. Selling pressure is now being seen around the 101.902 area, this was to be expected. A break above the aforementioned level would likely seal the deal for a test of the round number 102 above at least.

 

EURGBP - The market has not seen much action since it opened at 0.79091, both buyers and sellers seem very indecisive at the moment. We believe a small rally north is likely to be seen around the aforementioned 4hr S/R flip level at 0.79358 or 4hr supply above at 0.79795-0.79684before lower prices are seen. Why do we believe this? The weekly timeframe is NEARLY at the weekly demand area, and has a little way to go before reaching this, also as reported above, the daily timeframe analysis predicts we will see a small rally higher before lower prices are seen, due to the consumed daily demand area (for levels, please see above). So, taking this all into consideration, higher prices are likely to be seen on the 4hr timeframe before a much bigger sell off is seen to around 4hr demand below at 0.78602-0.78320 which is also neatly located just above daily demand at 0.78117-0.78533.

 

USDCAD - The market opened at 1.08154, price consolidated for a little while then made a run to retest the round number 1.08. We still do not expect price to fully react bullishly off of this round number, instead, we expect a break south down to at least the 4hr decision-point area at 1.07546-1.07680. As long as price remains trading between the 4hr decision-point area at 1.08250-1.08123 and the round number, our analysis may still be correct. Our reasoning behind a break of the round number is simply because we are trading into some heavy higher-timeframe supply, so lower prices are naturally expected to be seen soon.

 

USDCHF - The market opened at 0.90404, price action ever since then has not been very exciting, in fact all we have seen is consolidating action above the 4hr supply area at 0.90372-0.90148.

Monday’s can sometimes be very slow as already mentioned concerning other pairs, as a result our last analysis still holds true and is well worth remembering:

A break above the aforementioned 4hr supply area has likely opened up the possibility to much higher prices. Take a look to the left of the chart above this 4hr supply area. We can see lots of wicks indicating supply has been consumed right up to a 4hr S/R flip level at 0.90891, essentially all this does is confirm our daily analysis with a more magnified view. A rally straight up to this 4hr S/R flip level is unlikely since pro money may not have the required liquidity to push price higher immediately, instead a reversal may be seen down to the 4hr decision-point level at 0.90215, or if the sellers have the strength, a further push south may be seen towards the round number 0.9 before the higher prices are seen to gain the much-needed sell orders to buy into.

 

EURUSD - There is only one word to describe this pair at the moment, and that is BORING. Since the open, price has been consolidating with temporary upper limits being seen above at 1.34428 and the lower at 1.34258. Today’s action has a lot more high-impacting news announcements due out, so we should see some developments

 

GBPUSD - The pound has not exactly been very exciting so far this week. We’ve seen a small push north up to the round number 1.7 which reacted nearly to the pip, and ever since then the sellers have taken overall control. Very much like the Euro above, this pair is also consolidating (These two pairs are usually highly correlated, so this does make sense) with the upper limits around the round number 1.7 and the lower at 1.69599.

 

AUDUSD - Clearly there was supply still left before the aforementioned 4hr decision-point level, and price has now slammed back down into 4hr demand at 0.93795-0.93945. All is not lost though, this small rally we have just seen may have cleared out the remaining sell orders left between where price is trading now up to the 4hr decision-point level at 0.94408. With a lot more news due out today, we should see more buyers coming into the market pushing price further north. So, our short-term bias north remains the same.

 

USDJPY - Price is currently seen trading between the aforementioned round number 102 and a 4hr decision-point level below at 101.754, where could price be likely headed next???? Well, considering the weekly timeframe shows buying pressure being seen off of a long-term weekly R/S level (see above for levels); we certainly are expecting higher prices yet to come.

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