Thursday, April 27, 2017

NAFTA, BOJ, ECB, Economic Data

It is gonna be a busy day.

Overnight NAFTA news moved CAD and MXN as WH announced: "President Trump agreed not to terminate NAFTA at this time". It is very generous indeed... CAD huge bearish engulfing at a major resistance:

BOJ leaves monetary policy unchanged, boosts outlook for Japan economy. JPY did not move on this.

ECB meeting and the press conference could be more interesting. There is an upside risk to EUR if Draghi mentions ending asset purchases in his press conference. Chart technicals are a bit complicated as usual. We have a gap to fill at major resistance after a double top and a 4h bullish engulfing.

Equity indices exhibit reversal patterns especially SP500 at or near major resistance levels.

Wednesday, April 26, 2017

EUR breakout is being faded so far

EUR/USD broke the 1.0900 level yesterday, but after forming a double top it is now at 1.0880.

FX Major Support/Resistance Day

Many pairs are at or very near to major support or resistance levels:

Tuesday, April 25, 2017

"Price itself should also be regarded as a fundamental"

There is a great post on in the LESSONS FROM A TRADING GREAT series. Now they talk about Amos Hostetter. The most important idea for me is that the price itself can be regarded as a fundamental. This simply results in a feedback loop in the market. The big question is whether this feedback is positive or negative.The problem is that it can be both. If the price breaks out and there is a strong follow through, the feedback is positive and a trend is forming. If the breakout is muted that results in a false signal the feedback is negative. I think this is the most important is to asses time to time.