European data drives the forex market in early trading

European data drives the forex market in early trading

It was all about the euro in early trading with the currency strength indicator, the currency matrix and the currency array all in focus in the forex trading session. https://youtu.be/jeoO0esSLBc...
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Forex trading the US session – volume price analysis examples and much more!

Forex trading the US session – volume price analysis examples and much more!

Another great forex session as the US markets get underway following the overnight news in the Far East and in particular with regard to the Aussie dollar. Once again some great examples of volume price analysis in action which then provides the foundation for all the other technical analysis on the chart and supported by the Quantum Trading indicators. For forex traders the Quantum Trading currency dashboard is a great place to start with the currency strength indicator revealing individual strength and weakness across the eight major currencies. Then it’s on to the currency matrix and the currency array to consider the pairs and the complex of currencies, before moving finally to the currency heatmap. The importance of using multiple timeframes is once again highlighted both on the charts themselves and also on the indicators, with key indicators such as the trend monitor and trend dots helping to keep you in a position during the inevitable pause points in any trend higher...
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NZD and USD in focus on the currency strength indicator

Thanks to everyone for coming along to our forex webinar for the London session earlier, where our focus was the euro & eurodollar, particularly with some pretty heavy option expiry strike prices due up later today. Also in view was the kiwi which was in a similar state to the British pound ahead of Chancellor Osborne's autumn statement. In other words totally beaten down across multiple time frames, and despite various efforts to rise kept falling back into oversold territory. Interesting to see the Kiwi (white line) has now moved off the floor on the 30 & 60 min CSI. Also note the USD (the red line) is very overbought, so we need to keep an eye on what it is likely to do the remainder of the day. What happens in our next webinar for the US session is difficult to tell given it was Thanksgiving yesterday, and today is Black Friday. Appreciate it's not a national holiday, but given many in the...
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CSI highlights GBP sell off

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 any further move lower for Cable. Moving to the GBP/AUD  here too we have seen a move lower for the British pound with the pair eventually finding support at 2.1094 from which we have...
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The yen currency matrix in focus as equities fall

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...
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USD/CAD now testing key VPOC level

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, and with OPEC now set on a collision course with the alternative energy suppliers in an overt price war, oil prices look set to remain low for years to come. Indeed OPEC themselves have publicly stated that oil will...
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EUR/USD turns bearish moving through the VPOC

The EUR/USD continues to look bearish as it sits on support between 1.0885 & 1.0890 & just below the VPOC the yellow line on the volume point of control indicator. This level has now been breached on good volume and should take the pair to 1.0863. In addition the trend monitor has also transitioned from blue to red and with the US unemployment data coming up shortly, this could provide further downwards momentum if the numbers are on target or better than expected. The forecast this time around is 271k against a previous of 274k and whilst this is an important number it is the backwash from Janet Yellen's US dollar positive comments which continue to drive the US dollar higher, coupled as always with ongoing concerns over the Greek debt issues, which have yet to be resolved - if ever! The currency strength indicator is confirming the negative sentiment for the single currency with the orange line, the euro, reaching an...
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GBP gets a boost from retail sales

UK retail sales have given GBP a real boost higher & it's occupying six top spots on the currency matrix. Number was a great improvement & market has temporarily forgotten the negative CPI number. What's interesting is at 8.00 am at the London open, there was a huge buy of cable off an important order board level at 1.5520 with retail sales then just adding the momentum. Cable is also benefiting from USD pull back from its recent bullish move higher. The 4hr currency strength indicator is particularly revealing as the USD has been overbought for some time, but is now moving lower. The move higher in the London session has now moved to test the VPOC level in the daily chart, and we are now waiting to see if this afternoon's US data can help to push the GBP/USD through this key level. This is denoted on the chart with the yellow line.  ...
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USD now moving into overbought on the 4 hour chart

Without wishing to downgrade this evening's FOMC minutes, which will no doubt result in the usual volatile market moves, stop hunting & general shenanigans, the main FED event takes places on Friday at 6.00 pm London time. This is when Janet Yellen is due to give an important speech about the US economic outlook, and so one to watch. Meantime USD strength has continued overnight across the majors and into this morning, with German PPI helping to give the eurodollar a shove lower. Other items of note this morning include the MPC (Monetary Policy Committee) of the BOE playing their standard formation (football parlance) of 0-0-9. In other words 9 defenders, no midfield & no strikers. For FED watchers FOMC Member Evans has been speaking in Munich and has been simply repeating his call for a delay in raising interest rates. No moves expected as he is re-iterating his well known stance as a dove. This is why we need to know where...
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