Market Commentary 10/08/16

EUR/USD – New High Signals More Up-Side

Yesterday we saw the market make a move higher and we suspected that it could have been because the banks wanted a false breakout to take place so they can get more sell trades placed into the market.

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Today we have seen the market continue to move higher which means the move up we saw yesterday was not a false breakout. The move up has created a demand zone which we need to monitor for possible entries long in the event of the market falling back into it.

Below the demand we have a buy zone which has formed because of the banks placing buy trades, if the market is able to fall back to here it would be a good idea to watch for an entry long as we the know banks may not have been able to get all of their buy trades placed before the price moved up which means they might make the market fall in order to generate enough sell orders to use to get their remaining buy trades placed.


USD/JPY – Moving Higher From Demand

Yesterday we saw the price begin to fall out of the supply zone created by the bank traders placing sell trades.

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The demand zone which the market was really close to ended up being broken by a large move lower that took place in the early hours of this morning.

Now the market is moving higher from a demand zone that formed because of the bank traders placing buy trades, I apologize to my subscribers for not including this zone is last nights email, I just didn’t believe the market would reach this point by today. The focus now is on if this move up is able to break though the current high, if it is then more up-movement is possible back up the supply zone seen above the high.


AUD/USD – Profit Taking Entering The Market

Today a move higher took place which has caused the market to break well above the swing highs we suspected has been created due to the bank traders placing sell trades.

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The move higher means it’s highly unlikely the banks have placed any sell trades at the swing highs I’ve been talking about in my last couple of posts. There’s now a chance of the market moving up to the 0.7833 high that was made on the 21st April, once the market reaches this high we will have to watch closely in case the banks come into the market and decide to place sell trades.  The current down-move which is probably caused by the bank traders taking profits may provide us with an opportunity to get a long trade placed if the price is able to continue dropping into the buy zone marked in the image.

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