Supply and Demand is one of the core strategies used in trading. It focusses on the ancient laws of supply and demand and how price moves in a free-flowing market. The foundation of this strategy is that the amount of an instrument that is available and the desire of buyers for it, drive the price. It identifies zones on the chart where demand overwhelms supply (the demand zone), driving the price up or where supply overwhelms demand (the supply zone), driving the price down. Most supply and demand traders wait for the price to enter these zones, where major activities of buying or selling have taken place, before entering a long or short position themselves.
It makes sense to buy at a demand zone and to sell at a supply zone, but keep in mind that fresh zones are more effective than retested ones. They can be used as entry zones for a continuing trend or as reversal zones for a changing trend. Trades can be made aggressively or conservatively, each with their own rules of entry and exit. TradingView has a smart drawing tool that allows users to visually identify these levels on a chart.
I will be looking for shorts if a reversal pattern does occur at 1.6350 and the Daily CTL (Counter-Trend Line). However, if we do break above 1.6350 I will be looking for a pull back into 1.6350 before going long.
I will be looking for reversals to form around 1347-1350 for a potential short. I do see Gold making a retracement to the 61.8-78.6 fib region or make it's way back down to 1275 for a swing higher.
So for potential targets
Target 1: 61.8 Fib
Final Target: 1275.000 (If there is a Weekly Closure below 1275 I will continue to hold).
If I do see any reversal...
Good morning traders. The London session is well underway this morning. Since the start of the session the USD is gaining points on all pairs whilst the opposite is true for the NZD. The combination of strength and weakness between the two currencies makes the Kiwi Dollar an excellent pair to short.
USD...
I have been waiting for price to break 1.26869 as mentioned in my last post and GU has done finally done so with a retest confirming the bears. I look to TP at around 1.2653.
Price has tested the pivot level 1.12709 and now we have GBPUSD moving in a range between 1.2703 and 1.26869, if we get a break of 1.26869 and then a retest I can see GU falling to 1.26526
Keeping it simple really, the GBP has been showing some weakness from yesterday and this has shown on GBP pairs.
We have now come back below the 50ema on the 4h and now coming back to restest it.
Looking to take a short on the H1 chart at 1.2617, waiting on how price action plays out around this price.
We are at the top end of the Monthly Range, so I will be looking for a reversal at the 1.63500 Key Resistance level. I did post this analysis on the 22nd of May, However, we have finally approached this level today.
GBPCHF trend has been neither bullish or bearish with this pair moving sideways over the week. Bulls has not been able to break daily highs and neither has bears been able to break daily lows, however I do see this market as a bearish market and I am now waiting for bears to show us that they can break though the lows highlighted in blue, where we can then start...
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