EUR/USD – Market Falling After USD News
This afternoon we have seen the price of EUR/USD fall after several high impact news events were released into the market.
When my last post was published the market had just entered the sell zone with two bullish large range candles causing the move higher into the zone, I thought the move would continue and we’d see the market move into the supply zone created by the fall lower. This didn’t end up taking place and the price ended up falling out of the sell zone back towards the buy zone which had caused the move up to take place to begin with. We then saw a small move higher take place until the news was released this afternoon, when the news came out the market shot up to the high of the sell zone before falling lower once again and creating a bearish pin bar.
Now we must see if the market is going to fall through the buy zone or if we are going to see another move higher take place. If a move higher does occur I think the market will break through the sell zone and move into the supply above possibly breaking it in the process, if a move lower begins then I think its likely the buy zone will be broken and we’ll see the market fall into the daily buy zone located at the 1.11600 level.
The best thing to do for now is just wait to see if the markets goes on to break the sell zone or the buy zone, I can’t say with confidence which one will end up being broken but my personal bias say that it will be the buy zone.
USD/JPY – USD News Causes Spike Lower
The USD news caused the price of USD/JPY to fall but it ended up recovering and moving higher, I think there’s a good chance we’ll now see the market make a run up to the current high which formed from yesterday’s drop.
The spike caused by the USD news terminated near to the swing low which formed early this morning, this could be a sign the banks have got buy trades placed at the low of the spike and the swing low, I’ve marked a buy zone around these two lows, if you see the market fall into this buy zone watch for a bullish engulfing candle to form because it could be the banks getting more buy trades placed into the market.
AUD/USD – Low Still Not Broken, Market Now Moving Higher
The low of the retracement has still not been broken and with the release of the USD news it looks like the market is now going to move back into the sell zone that caused the last drop to take place.
Initially when the USD news was released the market spiked higher but by the end of the hour it had fallen all the way down to the open of the candle which left a bearish pin bar. This bearish pin bar was immediately followed by another bearish pin which made it look like the market was about to drop back down to the retracement lows, the next hour we saw a large bullish candle form and I think this candle is going to end up pushing the market back into the sell zone created on the 12th September.
For now monitor the market to see if it moves back into the sell zone, I don’t think it will happen by the end of tonight but it’s possible we’ll see it occur sometime tomorrow.