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Market Commentary 12/06/17

Market Commentary 12/06/17

EUR/USD – Retracement Back Up To Broken Demand

Last Friday the market continued to drop past the demand zone which had been broken on Thursday. Just before the market closed for the weekend, a retracement back towards the broken demand zone started. Today this retracement continued, but over the past few hours looks to be coming to an end, as multiple bearish candlesticks have caused the price to drop.

If this drop continues, I think it’s likely we’ll see the market fall below the current low and move down to the point where the low that formed on the 29th May was created. I think a move up from this low is probably going to take place, but I can’t be sure until I’ve seen how the market reacts once it’s been reached. A strong reaction with big bullish candles will indicate a move back up to the current highs, but a subdued reaction with small bullish and bearish candles will be a signal the market may break through the low.

There’s no way to know at the moment so for now just keep an eye on the price action.

 

USD/JPY – Falling From Price Action Zone

The price action zone which caused a large move down to begin on the 5th May, caused another move down to begin last Friday. I didn’t think this zone would cause a down move as big as this to take place, but it has, and as a result it now seems like we’re going to see the market move all the way down to the lows of swing which caused the move into the zone to occur.

From the way things are looking, I think we will see the market break through the low of the swing a short time after it’s reached it. A retracement of some sort will probably take place once the market reaches the low, but it won’t be long before that comes to an end, and the market proceeds to fall into the daily demand zone found between the 108.826 – 108.126 levels.

Like EUR/USD, there’s no way to tell what the market is likely to do once it reaches this zone, so for now I think it’s best to continue watching to see what price action has formed by this time tomorrow.

 

AUD/USD – Consolidating Under Daily Supply Zone

The small consolidation that began last Friday has continued today, but a small bullish move higher that started this morning could suggest we are going to see the market move into the daily supply zone sometime over the next couple of days.

I still don’t think this daily supply zone is going to cause the market to reverse. If it is, then we’ll see some kind of reversal structure pattern form when the market moves deeper into the zone. There isn’t much to do for now, so just keep an eye out for if a sharp swing down takes place when the moves deeper into the zone, as that would be a good sign a reversal pattern is in the process of forming.

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Market Commentary 08/06/17

Market Commentary 08/06/17

EUR/USD – Spike Through Demand Zone

The up-move we saw begin after the market hit the demand zone did not continue last night. Instead the market started to drop after a move up towards the current high failed and resulted in a bearish pin bar forming. Today the drop has made the market fall back into the demand zone that caused the move higher to take place, though at moment it’s tough to determine if the zone is going to hold, or if we’re going to see the market break through it.

My personal feeling is that we’re going to see the market break through the zone and move down to the low made at the end of April, before reversing or retracing higher. If a drop down to the low does take place, it could be the beginning of a large reversal structure pattern forming. If this is the case, we’ll see another swing down begin once the market returns to the point where the current high has formed.

At the moment I suggest you continue to watch to see if the market breaks through the demand zone. There isn’t really much to do until the market reaches the low, so it’s best to just monitor things for now.

 

USD/JPY – Moving Back Towards Price Action Zone

The consolidation we were seeing take place yesterday turned into a retracement last night, and has today caused the market to move all the way back to the point where the price action zone caused the previous swing down to begin on Monday.

 Though the market has moved back to the zone, I don’t recommend you use it as a zone to watch for entries into trades, due to the fact these price action zones that form at the end of big moves typically only tend to work once before being invalid for trading. We might see a small move down take place once the market comes near to the zone, but I don’t think it will be enough for us to make a decent amount of money off getting a trade placed. As far as trades are concerned, there isn’t anything that sticks out to me at the minute, so it’s best to wait for more price action to form.

 

AUD/USD – Reacting To Daily Supply Zone

Today we’ve seen the market react to the daily supply zone it had just entered at the time yesterday’s market commentary was published. So far the reaction to the zone doesn’t suggest we’re going to see a big reversal/retracement take place, although this could change if a sharp drop pushes the market down later on tonight.

If what we’re seeing now is in fact just a retracement before a new move higher occurs, I think the next move up will cause the market to break through the daily supply zone. If a sharp drop takes place and pushes the market down to around the 0.75000 level, it’ll be a sign a potential reversal pattern is forming, which means we’ll have to watch to see if another swing down occurs once the market return to the point where the drop originated from.

The post Market Commentary 08/06/17 appeared first on – ForexMentorOnline.

Market Commentary 07/06/17

Market Commentary 07/06/17

EUR/USD – Sharp Drop Into Demand Zone

This afternoon the ECB came out and said that it was cutting it’s inflation outlook through 2019. When this news hit the market it caused a sharp drop to take place into the demand zone I said to watch for entries long in yesterday’s post. Since the drop took place the market has rebounded, and is currently moving back up to the highs in a very strong fashion.

By the looks of it, it seems like we are going to see the market break through the current high within the next few hours. If this takes place the demand zone which has caused this move higher to occur will become a buy zone we can use to look for entries long in the event of the market falling. For now there isn’t really anything I can recommend in terms of trading opportunities. The one thing I would say is that if you have managed to get a trade placed at the demand zone, make sure you move your stop to breakeven once the market has closed above the high, as that would be confirmation the market is going to continue moving higher.

 

USD/JPY – Small Consolidation Taking Place

I mentioned in yesterday’s market commentary how we would soon see a consolidation or retracement take place on USD/JPY, due to the fact none had taken place since the market hit the price action zone late Monday night. In turns out that today we have seen a consolidation begin, with the market failing to break lower during a test that occurred late this morning.

I’m not sure how long this consolidation is going to last for, but I wouldn’t expect it to be long with all the high impact news we have coming out tomorrow. As far as trades are concerned, there isn’t anything I can suggest at the moment. I would say to watch for an entry long in the daily demand zone, but the fact the consolidation has started above it, as opposed to in it, like I thought it would, leads me to believe that we are going to see the market break through it when the news comes out tomorrow.

 

AUD/USD – Supply Zone Broken By Sharp Move Higher

The supply zone which the market had just entered at the time yesterday’s post came out got broken last night, by a sharp move higher that began once the AUD GPD news has been released.

As you can see from the image, the drop out of the supply zone was not very substantial, which suggested we were going to see the market break through the zone anyway, regardless of the news being released. The market is now inside a daily supply zone that formed from a drop which took place in the middle of April. With the way things are looking at the moment I don’t think this daily zone is going to cause a reversal to occur, though I do think we could see a retracement or consolidation take place once the market has moved a bit deeper into the zone.

For now I suggest you just keep watching for more price action to form.

The post Market Commentary 07/06/17 appeared first on – ForexMentorOnline.

Market Commentary 06/06/17

Market Commentary 06/06/17

EUR/USD – Climbing Back Towards Current High

The drop we were seeing take place yesterday ended up coming to an end right after my market commentary was published. When it ended another move higher did begin, but this failed to cause the market to break above the current high. This afternoon we’ve seen another move higher take place, though currently it looks like this one is also going to terminate shortly.

At the moment the outlook basically remains the same as yesterday. If this current move higher ends and causes the market to drop back into the demand zone, watch for an entry long, as it might be because the bank traders want to get more long trades placed. If the move higher continues, and we see the market break above the current high, it’ll be a sign further upmovement is going to take place, so we’ll have to continue watching the demand zone above for trades as well as watching for new zones to form.

 

USD/JPY – Large Drop Below Current Low

The downmove which began after the market touched the price action zone has continued today, with a large drop through the current low taking place in the early hours of this morning.

The drop has pushed the market closer to the daily demand zone that formed at the source of the swing higher which began on the 18th April. Judging by the fact that since the move down began no large retracements or consolidations have taken place, I think that it’s likely we’ll see one occur once the market reaches the daily demand zone. There’s no way to judge how big this retracement – consolidation or even reversal could be at the moment, so we’ll have to monitor the reaction to the zone to get better idea of what might be taking place.

 

AUD/USD – Inside Supply Zone

AUD/USD  is currently inside the supply zone I said to watch for entries short in yesterday’s post. So far we haven’t seen the market drop out of the zone, but if we do expect to see a reaction take place once the market reaches the zone I’ve marked on the image. This zone marks the point where the source of move higher which pushed the market into the supply zone originated from. Typically if the market falls back to the source of a move soon after it has taken place, it’ll cause a reaction to occur that’ll push the market back in the direction to which the move occurred.

At the minute it doesn’t look like we’re going to see the market fall out of the supply zone, but this could change if the current candle closes more towards it’s lows. If a drop out of the zone does occur, but you fail to get an entry short, watch for a bearish engulf to form after the market reacts to the zone I’ve said will cause a reaction to occur.

The post Market Commentary 06/06/17 appeared first on – ForexMentorOnline.

Market Commentary 05/06/17

Market Commentary 05/06/17

EUR/USD – Falling Towards Demand Zone

The sharp move higher we saw take place last Friday has not continued today. A drop that occurred this morning has instead pushed the market down towards the demand zone that formed as a result of the sharp move higher taking place. The market hasn’t yet reached the zone, but the current price action is suggesting that another move down will cause the market to enter the zone later on tonight.

If it does enter the zone, make sure you watch for an entry long, because this demand zone represents the most recent point where the bank traders have got buy trades placed. If this drop has taken place because they want to get more trades placed into the market, they’ll place them at a similar price to where they’ve got the others placed, which is the demand zone, so keep a lookout for signs that they’re getting these trades placed, i.e watch for large bullish engulfing candles to form.

 

USD/JPY – Falling After Spiking Price Action Zone

The price action zone I said to watch for an entry short in last Friday’s market commentary was spiked early this morning. So far we haven’t seen much down movement take place as a result, but that could change over the coming hours if a large bearish candle ends up forming.

If a large bearish candle does form and cause the market to drop down to where the current low is found, I think there’s a good chance we could see the low broken by this time tomorrow. If a large candle doesn’t form, and the market just kind of stays as it is now, it’ll be a sign that a move up through the price action zone is likely going to occur. I don’t really have any recommendations in regards to trades at the minute, so for now just keep monitoring the price action.

 

AUD/USD – Supply Zone Broken By Move Higher

The upmove which began as a result of the NFP being released has continued today. The market has managed to break through the supply zone which I said to watch for entries short, and is now on its way to the other supply zone found above.

I think we will see a downmove take place once the market reaches this upper supply zone, but I don’t think it’ll be the start of a reversal back down to the demand zone, it’ll just be a retracement before another move higher takes place. As far as trades are concerned, there isn’t anything which I can suggest at the minute, so just keep tabs on the price action for now, and wait to see what happens when the market enters the upper supply zone.

The post Market Commentary 05/06/17 appeared first on – ForexMentorOnline.

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