After a rollercoaster week everyone taking a bit of breather. But as David & I mentioned in our Program webinar on Friday - the currency to watch when markets are in turmoil is the Japanese Yen & related pairs. Understanding the Yen's role in this market will help you take bold trading decisions whenever we have volatility.
Good to see crypto fans getting hot under the collar whenver anyone suggests its not going to $1m, but that a severe correction is currently underway. If you understand volume price analysis you would have recognised the major buying came in some time ago. Does that mean you could not have ridden the move higher? No - it just means it would have been very, very risky as you would have been buying into a classic selling climax. Love the comments below the post - reminds me of the vitriol I usually get from gold bugs whenever I dare suggest their precious metal is going to fall!!! Have a great weekend everyone.
Mnuchin talking down the USD - USD/CAD firmly stuck at bottom of heatmap as potential double bottom on the daily chart never materialised. This pair has been heavily oversold since the beginning of the year, and despite an attempt to rally, chronic USD weakness has kept it anchored to the floor of our heatmap. Break of 1.2354 in today's trading does not bode well, but we need to watch the volume as we move into US open & at the end of today's session given the candle that is currently forming to see if this move has some 'legs'. ... See MoreSee Less
In this book of over 200 worked examples for stock traders and investors, you will discover an approach that was used by the iconic traders of the past to build their vast fortunes. Traders such as Jesse Livermore, Richard Wyckoff and Richard Ney all succeeded because they understood the power of...
You would have thought last week's market meltdown would have done more for gold, particularly given that one of the drivers for the sell off equities was a rise in bond yields on the back on inflationary concerns. Appreciate USD did bounce higher which would not have been positive for gold. Moreover, rise in gold & USD is when things are really, really bad - so makes me think last week was just a massive shakeout.
After last week's market gyrations no surprise to see heavy selling in JPY pairs which will start moving higher once fear has died down. Heatmap reveals current ranking with the commodity crosses the most bearish. ... See MoreSee Less
It's taken NFP for the USD to find its feet. Our currency strength indicator highlights the extent to which USD (red line) has been oversold on the daily chart & we may now see a half decent bounce. ... See MoreSee Less
USD/CAD is perfect example of the time a market or instrument can stay over extended (we only have to think of the indices!). I've been highlighting this pair since first week of Jan, and despite a feeble attempt to rise on what seemed like a double bottom on the daily chart - chronic USD weakness has kept this pair firmly anchored at the bottom of the heatmap.
But, as we know, nothing stays over extended forever, and the opportunity for a reversal will come along. USD also been talked down in Davos by Mnuchin. ... See MoreSee Less