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Market Update: after the USD twister

  It is 9h00 PM (Paris time) as we are writing this update on this Wednesday 24 June. As planned in our “prenews” theory, it was possible to cash in this week with the USD GDP Forecast number. Indeed, the deviation was more than enough to predict a sharp rise of the USDCAD and USDJPY pairs. As we can see on the following graphs below, there were many long call trades opportunities:

USDCADW1

 On a 1h time frame on USDCAD we can see that a clear bullish trend developped from monday to this afternoon. The first safe trade consisting in entering the market when prices closed above the Ichimoku Cloud. Then prices stalled and a Head and Shoulders pattern started to appear. This was the close signal. This afternoon, the ACTUAL number was equal to the FORECAST number (0,2 percent). In this case it was better to wait for the prices’ reaction. When they went north, a safe trade entry was when the Chinkou MA crossed the prices upwards. Then the closing signal was given by the long white candle above that showed that the bulls had lost steam.

A similar scenario occured on the USDJPY pair:

USDJPYW1

As we can see, on thi spair, prices were more reactive on the first trend but retraced more sharply afterwards.

Focus now

EURUSD

Due to Greece issues, it is wiser NOT to trade EURUSD. However, we can remain on the lookout for any news may result in a sharp rise or drop we may benefit from.

EURUSDW1

EURUSD has shown today an interesting move. Now prices are in a “correction” pattern, with highe highs and lows overhanging each other. Moreover, the bear trend has been impeded by many rejection levels shown on the graph by the blue lines: 1.1135; 1.1153 and 1.1169 represent potential support lines. EURUSD may be in range for a while until a news regarding Greece should be released.

UK100

UK100 W1

UK100 opened today with a rising “window” (Gap). We can see that this gap served as a strong support line all the trading day long. If price close above the last blue candle, i will be possible to go long for about 30 Pips. If prices closed under the gap, it would be possible to go short until at least the middle of the last big blue candle at lower price at 6710.3.

Conclusion: since there is no major news on Thursday and Friday, we will remain cautious and resort to our technical analysis. Remeber that Fridays aresubject to higher volatility; winning trades should be carefully monitored and closed as soon as possible.

 

 

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