Despite it being a holiday across most of Europe for Ascension Day – it’s quite lively out there at the moment. We’ve also just had an unscheduled comments from Mark Carney (not shown on Forex Factory), but came up on Forex Live feed. Greek Fin Min Varoufakis also speaking & even mentioning the word ‘reform’.
Meanwhile on the charts it’s been more selling of USD which is propelling euro & gbp higher with volatility candles on faster time frames. For cable 1.5788 is a key level being tested up to and including the daily chart. Have reading how a lot of traders are looking to short cable since it went over 1.5550, but it’s just not co-operating & the principle reason is the USD which continues to be sold off.
It’s only in the EUR/GBP that we have seen some serious GBP selling.
This is an aspect of forex trading David & I will be covering in tomorrow’s forex webinars – the importance of monitoring the flows into (or out of) a currency via a cross section of its pairs. This can help to determine, not only market sentiment towards the currency in question, but also whether that sentiment is unanimous and in addition how as traders we need to be aware how mixed market messages can hamper our trades. All the more reason for considering a currency across its related pairs, using some kind of currency matrix.