This morning’s forex session was dominated by the follow through from the FED meeting yesterday, and whilst US rates were held, the tone was more dovish with cuts likely later in the year, which sent equity markets rising strongly overnight and into the London open.
One of the most important aspects of price behavior are congestion phases. Many forex traders find these frustrating and yet this is where trends are born and ultimately develop into trends. The key indicator here is the volume point of control which identifies the fulcrum of bearish and bullish sentiment with the heaviest concentration of volume, along with the all important low volume nodes at higher and lower levels. And in this session we had a great example with cable as the GBP rose strongly and balanced with equally strong selling of the dollar. Later the yen pairs picked up the baton with heavy selling across the yen complex helping to propel the GBP/JPY and several others firmly higher as risk on sentiment prevailed.
And some great VPA lessons on the faster charts of sub one minute or scalping forex traders on the AUD/JPY.
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