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The table below includes updated supply/demand levels on the major currency pairs. The table is updated on a daily basis after the NY close. The levels will help trading decisions for intraday, swing and positions traders.

**RBR = Rally-base-rally 

**RBD = Rally-base-drop

**DBD= Drop-base-drop

**DBR= Drop-base-rally

** Refer to footnote for further information on supply/demand analysis

Supply Demand Charts and Analysis

Below readers can graphically identify supply and demand areas registered in our daily supply/demand table above.  A brief comment on the outlook has been also added.

1 - USD INDEX

The latest upside setback on the USD should not been seen as nothing but as a retracement within a bullish trend context. What is more, position squaring ahead of the long weekend in the U.S. markets on Independent day today.

Source: Barcharts

2 - EURO

The pair is consolidating gains post bullish reversal ahead of an almost fully absorbed supply area. With the combination of ECB and NFP risk events in the next 48h, along with a long weekend in the U.S., expect choppy moves all over the charts.

3 - BRITISH POUND

The vigorous boost off lows produced a fresh demand area, which should now provide an important supportive bid-sensitive mean to safeguard buyers interest. No major supply areas are spotted ahead. Watch for BoE monetary policy decision later in Europe.

4 - JAPANESE YEN

Despite the bullish run got abruptly disrupted by a major sell-off off 100.70, bids ahead of demand at 99.10-98-85 stalled the fall, producing a bounce back to 100.00. Dips buyers are likely to continuously show up. 

5 - AUSTRALIAN DOLLAR

The pair is no longer supported by the last daily demand noted, allowing the downside to extend further until the next demand of notice - also daily - is identified at 0.8850-8725, however, is worth noting most of the bids possibly clustered there were absorbed back in Sept 2010 when the area was first tested.

Good luck everyone!

Note to all readers

1 - Note every timeframe has an area of supply and demand, however, in order to keep levels reliable and active for most of the trading day, we have decided to only take levels from the 30m/H1 charts and above. Bear in mind, the higher the timeframe, the higher its reliability, thus also the reason why anything above 30m/H1 offers good value for the reader. Besides, the smart money aka large institutions tend to use these larger timeframes to enter sizeable positions.

2 - Once price reaches a demand/supply area, an imbalance between buyers and sellers occur, and one side takes temporary control with price reacting, initially, in favor of the dominant side. If the zone in the table states "fresh" that implies price is likely to respect the area and move away from it quite fast. If the zone, on the contrary, has been tested in the past and absorbed partially, chances are that subsequent tests will probably show weaker pullbacks as the imbalance between buyers/sellers (bids/offers) is reduced.

3 - If previous fresh supply/demand is not penetrated in its entirety, meaning unless the table states "100% absorbed", the levels is still valid. Only when the "100% absortion" occurs, you will expect price to seek the next area of supply/demand.

4 - RBD (supply) or DBR (demand) are the ideal combinations to look for as it implies one is buying cheap/selling expensive at wholesale price at the extreme of the curve. It is not suggested to risk entries in the middle of choppy markets.

5 - Trade with the trend for higher probability. We are helping you by giving the uderlying bias of the market, which should be taken in due consideration. While supply/demand levels are likely to work in both directions, with and against the trend, one increases its odds by sticking to the dominant trend. What one should avoid by all means is entries against dominant trends in the middle of choppy markets.

6 - The column "data to watch" provides traders with a more accurate timing as to when these supply/demand zone may come into play, barring other unexpected catalysts.

7 - All supply/demand areas from 30m time-frame up are taken into account, pre-analyzing other critical components such as strong take off from origin, little time spent at the level, fresh area, trade bias. However, readers should still treat the information at their own discretion, previously validating whether or not enough profit margin exists to achieve desired risk reward, always noting where next supply/demand areas are.

8 - The analysis intends to dissect for the reader at FXstreet.com where large banking institutions have been recently buying and/or selling a particular pair and what is the likelihood of these activity continuing to show up at that particular level. Note no conventional technical analysis derived from the prices was conducted.

9 - No entry/stops/profit target levels are given, as the intention of this report is to purely suggest where large institutions aka the smart money - insiders and better informed speculators - are most likely to be actively selling or buying. To learn more about supply and demand visit Sam Seiden's articles and webinars.