Market Commentary 08/08/16

EUR/USD – Retracement Over ?

Last friday we saw the market start to retrace after the NFP came out as being positive for USD.

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When the market opened last night the retracement continued but when the London session opened this morning the price started to drop which means the retracement may now be coming to an end. This wont be confirmed until the current low is broken so for the moment I think it’s best to just wait to see what price has formed by tomorrow morning.

The supply zone seen just above the current price is still valid for trading if the market manages to move up but make sure you wait for a bearish engulfing candle to form before going short.

USD/JPY – Market Entering Sell Zone

Last weeks up-move has continued today and the market is now inside the sell zone created by the banks placing sell trades.

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I think this zone will cause the market to retrace down to the demand zone seen closest to the current market price. The demand zone seen below this is also still important because it formed at the point where the banks were getting their buy trades placed into the market. A move back down to here may occur in order for the banks to get any remaining buy trades executed before a bigger move higher takes place.

 

AUD/USD – New High, Reversal Still Possible

This past hour has seen the market spike through the supply zone created when the market dropped due to the NFP release.

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Even though we have a new higher high I still think it’s possible for a reversal to take place as this move up could have simply been the bank traders taking profits off the sell trades that caused the price to drop upon the NFP being released. They do this when they haven’t been able to get all of their trades placed into the market, in this case they might not have got all their sell trades placed when the market fell creating the previous high, this means they have to make the price move back up to make other traders place buy trades and thus put buy orders into the market which they can then use to get their remaining sell trades placed.

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