Market Commentary 02/06/17

EUR/USD – Sharp Move Higher Due To NFP

The NFP was released today, and the impact it’s had on the markets has been dramatic, with big moves taking place on most of the major currencies. On EUR/USD  the reaction to the news caused a sharp move higher to take place. This move has caused the market to climb above the current high we almost saw it break yesterday.

The fact the high has now been broken is a sign we’re probably going to see more up-movement take place next week. If this is the case the demand zone which has been created at the bottom of today’s move higher is the point you need to be watching for entries long, as it’s now the most recent point where the bank traders have got buy trades placed.

 

USD/JPY – Big Drop Towards Current Low

Whilst the release of the NFP caused a sharp move higher to take place on EUR/USD, on USD/JPY it caused a big drop to occur. This drop has pushed the market down to the point where current low has formed, but it has yet to be broken, which means there’s still a slight chance we could see a move back up take place before the market closes.

If a move up does occur, I don’t think it’ll be long before the market drops again and breaks through the current low. A break of the low would be a signal more downside is to be expected, so I think the focus next week will be on getting short trades placed to take advantage of the move down. As far as trades are concerned, there isn’t really anything I can recommend at the minute, but I do suggests you watch for an entry short inside the little zone I’ve marked just above the current market price, because if a small move higher does take place it’s likely to terminate somewhere around here.

 

AUD/USD – Moving Towards Supply Zone

Similar to EUR/USD, the release of the NFP also caused the price of AUD/USD to rise, albeit not as much as what we saw on EUR/USD.

The move higher has caused the market to move up towards the supply zone that formed on Wednesday. I don’t think we’ll see the market enter this zone tonight, but if it does make sure you watch for entries short, because this zone encompasses the most recent points where the bank traders have got a large number of their sell trades placed.

Reply

Get My FREE 6461 Word Book On Supply And Demand Trading

Lear to trade the same way the pros do!
No Thanks, I prefer to Lose Pips :(
close-link

Want Free Forex Trading Signals?

Get Supply & Demand Trade Levels Weekly Into Your Inbox!

Plusss...
  • My 6461 Word Book On Supply And Demand Trading 
  • How Old Supply And Demand Zones Do Not Cause The Market To Reverse And The Reason Why Traders Mistakenly Believe They Do
  • Why The Time It Takes For The Market To Return To A Supply Or Demand Zone Will Determine Weather The Zone Has A High Chance Of Causing A Reversal To Take Place
  • The Differences Between Zones Created By Bank Traders Taking Profits And Zones Created by The Bank Traders Placing Trades
Get Free Access Now!
close-link
New Book: "How To Determine When A Reversal Is Going To Take Place"