Some week’s even a
charthacker like myself has to push the price levels and technicals to the
backburner and respect that psychology will be ruled by the economic calendar…and
this week is stacked.
There are two charts that are at key
momentum levels and one look at the daily EUR/USD and daily AUD/JPY it’s clear
to see that this week’s central bank onslaught is going to establish the risk
environment going into Fall.
With the Dow-U.S. Dollar stall, the
risk on of last week’s Thursday/Friday rally in equities has taken a pause. But
the EUR/USD is showing weakness as the week begins, perhaps a little buyer’s
remorse for euro bulls. My take on much of the EUR/USD rally was that it was
more a short squeeze than long positions being put on and the net results in
simply fewer shorts than an increase in longs.
Past performance is not indicative of
future results
The
EUR/USD manage to break higher through resistance at 1.2332 but the pair sank
back below this ceiling as the dominant trend of the EUR/USD is still down with
consistent red GRaB candles and a “four to six o’clock” 34EMA Wave angle.
While the EUR/USD is in a downtrend, the
AUD/JPY is moving sideways in a “two to four o’clock” chop.
Past performance is not indicative of
future results
The
trading range in the AUD/JPY along with the overbought Stochastics reading
suggests that the AUD/JPY is techinically at an exhaustion level.
The AUD/JPY is not just a distribution
fade set up (albeit very aggressive not only because of this style of set up
but because of tonight’s Building Approvals release at 9:30pm EST) but it does
show that the pair has reached a level at which the bears have taken over
control (risk aversion) along 82.00 – with highs at 82.34 and 82.35.
As an
active forex trader and Chief Currency Analyst for InterbankFX.com I do write
for a number of sites all over the web and I am happy to say that I will be
posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
Some week’s even a charthacker like myself has to push the price levels and technicals to the backburner and respect that psychology will be ruled by the economic calendar…and this week is stacked.
There are two charts that are at key momentum levels and one look at the daily EUR/USD and daily AUD/JPY it’s clear to see that this week’s central bank onslaught is going to establish the risk environment going into Fall.
With the Dow-U.S. Dollar stall, the risk on of last week’s Thursday/Friday rally in equities has taken a pause. But the EUR/USD is showing weakness as the week begins, perhaps a little buyer’s remorse for euro bulls. My take on much of the EUR/USD rally was that it was more a short squeeze than long positions being put on and the net results in simply fewer shorts than an increase in longs.
Past performance is not indicative of future results
The EUR/USD manage to break higher through resistance at 1.2332 but the pair sank back below this ceiling as the dominant trend of the EUR/USD is still down with consistent red GRaB candles and a “four to six o’clock” 34EMA Wave angle.
While the EUR/USD is in a downtrend, the AUD/JPY is moving sideways in a “two to four o’clock” chop.
Past performance is not indicative of future results
The trading range in the AUD/JPY along with the overbought Stochastics reading suggests that the AUD/JPY is techinically at an exhaustion level.
The AUD/JPY is not just a distribution fade set up (albeit very aggressive not only because of this style of set up but because of tonight’s Building Approvals release at 9:30pm EST) but it does show that the pair has reached a level at which the bears have taken over control (risk aversion) along 82.00 – with highs at 82.34 and 82.35.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner