Market Commentary 03/05/17

EUR/USD – Consolidation Continues

The consolidation the market has been in since the beginning of the week has continued today, with a small up-move that began last night being counteracted by a similarly sized downmove that began this morning.

These small moves don’t change anything in regards to the current outlook of the market, so for now it’s best not to place any trades until the results of the French election have been released tomorrow.

 

USD/JPY – Yesterday’s High Broken

The high the market made when it broke through the upper edge of the daily supply zone was broken a couple of hours ago. The market is now trading above the high, but I’m still not convinced we’re going to see it continue moving higher over the next few hours.

As far as trade are concerned I still can’t recommend getting any long or short trades placed at the moment due to the election results coming out tomorrow, so for the moment it’s best to wait to see what price action has formed once the results have been released.

 

AUD/USD – Falling Into Demand Zone

The up-move which I thought we were going to see develop after yesterday’s market commentary was published did not occur last night. Instead we saw a reversal take place, and today this reversal has caused the market to fall into the demand zone I marked in yesterday’s post.

Like I said in my previous post, I don’t think we’ll see market reverse at this demand zone, but I do think it’ll cause some kind of reaction to take place before the market falls again. I’m not sure where the reaction is likely to terminate, so be on the lookout for signs of a reversal taking place if the market moves out of the zone later on tonight.

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