Market Commentary 11/11/16

EUR/USD – Consolidating At Daily Buy Zone

Yesterday we saw the market return to the daily buy zone which caused the previous swing higher to occur, after a small move higher took place last night, the market is now back to being right at the edge of zone.

aviary-photo_131233511035216954You can see another small move higher took place a couple of hours ago, this move higher terminated around the point where yesterday’s high formed. With the market now close to the edge of edge of the daily buy zone, I don’t think it will belong before we see either a drop through today’s low deeper into the zone or another small retracement into the supply zone which formed at the bottom of the move down.

It’s doubtful we’ll see the market make any big movements now especially considering the fact it’s Friday and it’s late in the day.  I think from now until the market’s close at 10:00pm GMT we’ll probably just see the price consolidate between today’s low and yesterday’s high. When the market opens on Monday you want to continue watching for entries short in the supply zone marked on the image.

 

USD/JPY – Profit Taking Continues

The profit taking which was beginning when my previous market commentary was published has continued today, with the market falling a little bit closer to the demand zone that formed from the last move higher.

aviary-photo_131233523916931207A small move higher has been taking place over the past few hours but so far it hasn’t manged to break through any highs so I don’t think it will be long before we see the profit taking continue. The demand zone where I said to watch for entries long is definitely still valid for trading, the profit taking we are seeing now means that there is high chance the market could fall or spike into the demand zone at some-point next week so keeping an eye on the zone is still our primary focus at the minute.

AUD/USD – Second Drop After Consolidation

AUD/USD has fallen again today after initially spending part of the night consolidating between yesterday’s low and yesterday’s high.

aviary-photo_131233555649401545The drop has created a supply zone which we can use to look for entries short if the market moves back up tonight or Monday. You might have noticed I’ve drawn the supply zone to incorporate the two highs which formed yesterday. The reason I’ve done this is because most of the bank traders sell trades which have caused this move down to occur were placed at the high that was made yesterday morning. If the market comes back up to the zone the banks will want to get their sell trades placed somewhere close to where the majority of their sell trades have been placed, not necessarily the high of the supply zone most traders would have drawn marked with a black line.

 

 

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