Usd overnight exchange rate hints a big turn around in Us dollar futures as pound tumbles

we have seen a big downside squeeze in pound exchange rate against us dollar and in result usd overnight deposit rate squeezed to +135 bps to 190bps.

 This could be just a start of us dollar dominance in coming weeks and months as speculation on rate hikes has come to extreme and it could just be around the corner and banks have started to buy us dollar against all major currencies and targeting the weaker one of them all in the recent time and if pound keep managing to struggle against us dollar then we can soon see euro and other major currencies start following pound.

Euro dollar has been in big consolidation mide since the mid 2015 and we have not seen any big rallies that follow any spike on weekly and daily time frame but we do need to watch crucial areas as bulls can play a trick for stop hunting and any rally that fails above the recent high or any big squeeze that fails within a session or two can be a very good area to enter.

Keep watching the blog for updates and I would post chart very soon of Us dollar and euro dollar with entry exit and targets.

Useful steps to choose before choosing a trading system----See the facts you need to know before relying on traditional methods

Forex price action strategies

------Never use failure price action techniques like fibos, trendlines and candles as price never react at those levels randomnly and if you expect trendline to hold the price when it is tested then think about it again because when I have to buy some dollars I wont check if a downtrendline is provide support but rather I would use that trendline to catch stops and always look for initial breakouts failure to catch the buy stop orders and after taking the stops for long trades I will catch sell stop orders just below the retesting candle and when market catch all the stops of sell orders then once again I have the best low price to buy and that is the logic of not using trendlines to predict randomn price movements.

Price action is the only and most effective tool

for trading, not only because it helps a trader to see the higher probabilities areas of trading but also most recent price level is used which can attract lot of orders e.g News can drive the price anywhere but after targets have been met we can see starting and ending points of targets provide strong trading levels and they are much more reliable in any case because that might be the areas where large bulk orders were placed and those who are still looking to enter the market after stop hunts can look to enter at the same levels and hence giving you an area to work with which is very reliable and logic behind is very clear.

We trade fibonacci waves, harmonic patterns in such a way to catch reactions at particular level again and again but common why market take turn at those levels again and again as price reaction at those levels is not random.

We just keep on learning different advanced price action techniques but never use our brains to come out with conclusions that what are the probabilities that a paricular fibo number will hold the price and a down or uptrend line will force rejection.

Shocking truth is these fibos trendlines and candles only tells 10% of the price history but as a matter of fact I never believe that a term trendline ever exists or helps trader to take trading decisions.

But as a matter of fact breakouts. Failed breakouts and approach to certain demand and supply level or retest of a particular are the most reliable and offer strong attribution of trading facts and as a matter fact are more reliable.

Weekly Review week started 2nd october 2016 ---- Us dollar gold and euro looking for direction

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.