Trading was quite light amid consolidatio due to profit taking during weekend and largely due to lack of fundamentals that drives the prices. I am waiting for trading to resume this weekend and as this week is another NFP week so one thing we can see is movement in USD crosses specially Us dollar future, gold and euro.
Prices of Us dollar and euro are in extended choppiness
Its nothing new in Forex trading that currencies went into deep sleep and price often do that when there is no participation by strong holders and volume behind moves are very low and spikes often got faded immediately or in next few hours and it never too far away from catching stops both ways and price start resuming trend again or even can reverse and in case of Euro price resumed its downtrend post Brexit and fall apart along with pound but has found support but approach to overall supply has been so compressive that I waiting for reaction at test of capped supply and Will look to short towards the alone origin and it could turned out to be a best risk reward deal if it behaved as expected
Us dollar can remain bearish prior to NFP Data
As far as weekly review or opportunity is concerned Euro will remain bullish and you can see buy on dips scenario but If we face relatively volatile price action for a session or two we should atleast wait for breach of strong supply or demand and in this case 1.1050 and any rejection from new highs and breach the mentioned area then we can look to sell the retests and that is the best way to trade price action.
Trade plan and strategy to trade currencies future and gold
Main purpose of this blog is always to let everybody give confidence and alert traders of possible opportunity available this week and also about technical knowledge. I always use to have one trading strategy and plan that give me clues of risk and probabbility of movement in currency in the coming week and I often keep eye on risky events and possible reason of rejections and stops. e.g this week I expect euro to show more movement as compare to its rallies in recent weeks.
Reason I am quite cirumspect because im my last post I expect price to hold recent support and that is what price has done and it holds and in such scenarios when price holds one area then it possible look for the next strong area that is holding the price up or down. As a traders you might have heard few technical terms like capping supply and retests and that is what exactly price respond to capping supply and when it retests the previous zone which hold the price up we can again look for this area to give away and then the whole context might be easy to understand. I will soon post chart on the idea what I am expecting right now and that is what forex trading is all about as it is about a plan to keep things straight and target the pairs that best suits the opportunities wise i. the coming days or weeks.
