https://youtu.be/ZHhXr93Aowo
Currency Matrix Reveals Sentiment for the British Pound
The currency matrix reveals sentiment for the British pound clearly. It shows GBP performance against all majors. This relational view exposes strength or weakness. Traders spot pound bias early. A terrific trading session as the London markets get underway with heavy selling of the British pound across the complex and clearly signalled on the currency matrix indicator for MT5.
How the Matrix Highlights GBP Sentiment
The matrix ranks GBP in crosses like GBP/USD, GBP/JPY, or EUR/GBP. Consistent green cells signal bullish sentiment. Red cells warn of bearish pressure. Volume price analysis (VPA) confirms—high volume on moves validates the matrix ranking.
Practical Insights from GBP Matrix
Strong GBP across pairs shows demand. This often ties to UK data or risk-on flows. Weak GBP signals selling. Safe-haven yen strengthens in crosses. Quantum currency matrix on MT5 or NinjaTrader updates live. It makes relational sentiment visual and instant.
Combining with VPA for Better Trades
VPA adds conviction. High volume on GBP upmoves...
Trading success is all about timing and here we use the currency stregth indicator and the currency matrix to explain the principles.
https://youtu.be/LMgQgIjTpPM...
https://youtu.be/8CNbdPQ_fow
Euro Dollar Bears in Control on the Fast Charts and Currency Array
Euro dollar bears remain in control on the fast charts. Selling pressure dominates lower timeframes. Price pushes lower with conviction. This signals short-term weakness in EUR/USD.
The euro has been selling heavily in the early part of the London trading session, with the currency array indicator displaying this clearly on the 15m timeframe. The only pair lagging is the EUR/CHF, with all the other pairs neatly stacked at the bottom of the ranking ladder and now offering potential reversals from the over sold condition on the faster timeframe. The chart alongside for the EUR/USD reflects this bearish sentiment and here we have the accumulation and distribution indicator displaying the various levels of potential support and resistance.
The indicator works on the price action and signals those areas where levels have been tested from above and so are likely to act as support, and those where price has been tested from below,...
This morning's highlight comes from Chancellor George Osborne here in the UK with his Autumn Forecast Statement, so expect lots of smoke & mirrors, volatility and opportunity to shake traders out of the market.For the British pound complex on the faster time frames, it's been a case of some good moves lower against USD, JPY & euro. The hourly currency strength indicator is also highlighting the GBP as heavily oversold, but as we have said many times in our forex webinars - currencies, markets and instrument can stay stubbornly over extended much longer than we think. And as we also say in the webinars your time horizon will always be a factor in any trading decision, and also help to quantify the level of risk associated with that trade.
Discover more about the currency strength indicator here....
Aussie Finding Some Bullish Momentum
The Aussie is finding some bullish momentum recently. AUD pairs push higher. This reflects renewed buying interest. Commodity links and risk sentiment support the move. Traders spot opportunities in AUD crosses.
Of the three commodity dollars, namely the Aussie, Kiwi and Loonie it is perhaps the Aussie which finally appears to be showing signs of a potential reversal from its oversold state on the slower time frames of our currency strength indicatort (the blue line). And of the Aussie pairs it is perhaps the AUD/USD and AUD/CAD which appear the most interesting.
Starting With AUD/USD
Starting with the AUD/USD it was the failure in May to break through the resistance at 0.8160 which was the start of the its downards descent which saw the pair finally find some support at 0.6906 on the Friday before the Labor Day Holiday in the US. And whilst this level was tested once again last Monday, since then the AUD/USD has managed to...
CSI Highlights GBP Sell Off
The Currency Strength Indicator (CSI) highlights GBP sell off clearly. It ranks currencies by relative performance. GBP drops sharply in rankings. This signals heavy selling pressure. Traders see weakness early.
Ahead of the release of the Monetary Policy Minutes from the RBA, and tomorrow's CPI number for the UK, it's been interesting to see how the Aussie and British pound have been behaving in today's trading session. And of the two currencies it has been the British pound which has seen some heavy selling against both the USD and the Aussie.
The hourly chart of the CSI (currency strength indicator) highlighted the extent to which the British pound was overbought, and Cable's failure to take out the resistance at 1.5688 signaled the start of a reversal in fortune for the pair and a move lower of over 100 pips. And it has only been a combination of the VPOC at 1.5585 and support at 1.5578 that has prevented...
USD Looks Set to Move Higher
The USD looks set to move higher in recent sessions. Buying pressure builds steadily. This reflects renewed dollar strength. Traders watch for continuation across majors.
In the current media speculation surrounding the impact of the PBOC decision to revalue/devalue the yuan, particularly on how this may (or may not) affect the FED's decision about raising interest rates, it is easy to forget two things. First, the fundamental news releases which too will add their own layer of volatility, and second Greece, which today is back centre stage as the Greek parliament meets today in emergency session to ratify the latest bail out deal.
Key Releases
Today's key releases are primarily in the US with retail sales, core retail sales and the unemployment claims due. And of these it is the retail sales numbers which the market will be focused on primarily because they may give some guidance as to the FED's thinking about interest rates.
Meantime in this morning's...
We have four central banks on today's trading horizon, BOJ, RBA, BOE & later this evening we have interest rate decision, policy statement and a press conference from the RBNZ. I really must come up with a collective noun for the CB's! In between we have the Manufacturing Number for the UK where forecast is for 0.1% against a previous of 0.4%. This release can be very difficult to judge as there has been no clear trend since 2009 when the number was consistently awful. On the GBP matrix we have seen some strong buying of GBP against USD, which is not surprising given the alleged Obama comments at the G7.
However, GBP buying actually started last week after NFP. It was the deep lower wick to Friday's candle which signaled a potential reversal for cable. This was given further impetus on Monday, & the buying was cemented as yesterday's candle ended the session with an even deeper lower wick. The current daily chart...
The overnight fall in the Nikkei 225 of 1.76% has resulted in an impressive two bar reversal (aka a shooting star) on the daily chart for the USD/JPY - so no surprise to see the pair move lower in this morning's trading session.
What is perhaps more significant is this move in the JPY is not consistent across the JPY pairs we follow on our matrix, and in particular the EUR/JPY and GBP/JPY. The latter is a pair I am looking to short on a longer term basis, but patience is required not least because I want to see the JPY begin to move away from the bottom (oversold) on the currency strength indicator. This also highlights a key aspect of forex trading, namely individual currencies can stay overbought or oversold for much longer than we expect. Much, of course, will depend on risk sentiment, and in particular whether the current downwards trend in equities continues, and if so then we...
USD/CAD Now Testing Key VPOC Level
USD/CAD is now testing a key Volume Point of Control (VPOC) level. VPOC marks the price with highest traded volume. It acts as strong support or resistance. Price often reacts here with bounces or breaks.
Once GBP data is out of the way we can then look forward to the unemployment claims in the US and the Ivey PMI from Canada. Both items are released at the same time & here expect to see the biggest reaction in the USD/CAD. On the daily chart for the pair the resistance in the 1.2470 - 1.25 region (which also coincides with the VPOC), is putting a temporary brake on any move higher. On our daily currency strength indicator, we do appear to have more downside for the CAD, particularly against the euro, where we recently had a strong move away from the resistance in the 1.38 region.
As always the Canadian dollar will also reflect price trends for oil,...
