- This topic has 27,675 replies, 54 voices, and was last updated 1 minute ago by .
-
It may seem obvious after today’s whipsaw reaction to a hotter US PPI but it pays to remind yourself that it is not the news but the reaction to news that matters.
[Forex Trading] DUH! Reaction to News is What Matters
NAS100 DAILY CHART – WHAT STANDS OUT?
If you look at the two highlighted areas, what catches your attention?
Notice the 2 lines drawn off the high and then the 2 red lines drawn off the low.
These are patterns that repeat on an Amazing Trader chart, drawn by its proprietary algo. In each case, it is a pattern that signals a potential change of direction.
I don’t trade NAS100 as US traders cannot trade CFDs but what I would take from this, even if I do not trade a 4-hour time frame, is to look to trade in the direction of what the lower blue or rising red lines are telling me as they are indicating a change in directional risk.
For more information on the Amazing Trader charting algo, go to The Amazing Trader
USDCAD 4 HOUR CHART – TESTED BOTH SIDES
When I used to trade currency futures, traders liked the CAD as ut tended to be one of the more technically driven currencies.
Today was one of those technically driven days. USDCAD tested 1.3690 resistance and that was followed by a test of 1.3632 support.
Technicals are pointed down but needs a 1.3532 and 1.3609 break to move out of the current range.
Intra-day, look for the Power of 50 1.3650 level to be pivotal.
EURUSD DAILY CHART – TRYING FOR A BREAKOUT
What is surprising by today’s move is the timing as it appeared traders were content to sit on their hands waiting for tomorrow’s US data.
Whatever the case, the move above 1.0814 is significant if it holds but a break of the trendline, 1.0834 today, is needed to confirm the tide has turned in favor of the EURUSD.
Whatever the csse, EURUSD 1.08 now becomes pivotal as above it market will likely be in a buy on dips.
- You must be logged in to reply to this topic.