Hey traders, how did you do this week?
It was pretty slow wasnt it?
At least, that’s what I thought.
But that’s not a bad thing… maybe that’s the calm before the storm?
There might be a plenty of fundamental reasons of why the market behaved like that, but I got a technical reason, and I think it’s pretty strong one.
You see, every time the market trades around an important long term level, there is a fierce battle between buyers and sellers.
They push each other to see which group is going to win. When buyers win, the market goes up, when sellers win, the market goes down.
That’s the reason the market consolidates most of the time around these levels.
Now, I see no point on trying to guess where the market is heading, I think the best thing to do is to wait for the market to show us which group won, then we take action and start to trade.
Does it make sense?
So what happened this week is that most currency pairs are trading at an important level. We still dont know which group won, but me tell you something, we’ll know soon, perhaps at the beginning of next week?
I think so, so you better get ready because I think next week it’s going a good one!
Here are some of the currency pairs that are trading at an important level and I’ll watching early next week.
The EURUSD is trading near a long term important level, and as you can see in the chart above, the short term zone it’s pretty clear (at least from the lower extreme).
So my plan for the EURUSD is to wait for the market to break the ST support level, then I’ll start looking for short opportunities.
The NZDUSD is also trading near a LT important level, but in this case, I’d be comfortable trading both sides of the breakout.
So in this case I’m waiting for the NZDUSD to break either extreme of the range, then I’ll start looking for trade opportunities.
On either side of the breakout we still got plenty of room before we get to the next LT level.
There are other pairs that are already trading in a clear market condition like the GBPAUD and the USDCHF….
What did you think about the market this week? Wasnt it painfully slow?
What about the currency pairs that I analyzed? What other currency pairs are you watching?
Let me know in the comment section.