Hey traders, I hope you are doing alright with your trading.
What do you think about the market lately? In the last few weeks, most of the currency pairs (specially the majors) have been trading in a very tight and undefined range…
It has been difficult to trade them… What’s your take?
Ok, let me tell you mine… but first something about fundamentals.
Fundamentals for the rest of the week
There are plenty of fundamentals this week, and a few of them are very important.
So maybe that’s the reason the market has been trading in a very tight range? It could be… but the truth is that no one knows the real reason…
Anyway, these are a few of the fundamentals that you need to be watching this week:
USD FOMC minutes (the most important of them all)
EUR Draghi Speaks
AUD Employment report
GBP Interest rate
EUR Draghi Speaks
CAD Employment report
I’m going to be specially careful about the FOMC minutes, it has the potential to change the sentiment of the market, so be careful alright? Specially if you plan to open a trade in any USD pair or if you have a trade open and the market is close to your entry or SL level…
Forex Majors Analysis
Almost all majors have been trading in a very tight and undefined range… If you have been trading them you know what I’m talking about…
The market is getting clearer and clearer by the minute, yesterday I was unsure about many currency pairs, they were either trading at an important level in a not well defined range in the short term charts, or unsure about the long term levels.
But things are different now, most pairs cleared up their path and are in the clear market condition, heading directly to the next LT level.
Today a like the Majors:
EURUSD – Clear bearish market condition (shorts in play)
USDCHF – Bullish when trading above 0.9697 (longs in play)
GBPUSD –Bearish when trading below 1.5730 (shorts in pay)
USDJPY – Clear Bearish market condition (although I don’t think I’ll open a trade in this one because of a possible BOJ intervention).
Since last December the EURUSD has been falling like a rock, it follow through on January and the first days of February. But we might be on the way of a small retracement (at least to the next LT resistance level):
It broke the resistance of the short term range and it is likely to continue its way up until it reaches at least, the next LT resistance level.
Look for long opportunities if the EURUSD keeps trading above 1.3707. Next LT resistance level is at 1.3846