Market Commentary 15/11/16

EUR/USD – Falling After Small Retracement

EUR/USD is falling back towards the bottom of the daily buy zone again after a small retracement took place inside the zone last night.

aviary-photo_131236960870561646The retracement began shortly after yesterday’s market commentary had been published, it didn’t last long and eventually came to an end around the time the London trading session began. With the market now falling again I don’t think it will be long before we see the market break through the low of the buy zone and begin moving towards the daily buy zone below found at the 1.06346 – 1.04576 level.

The focus is still on the sell zone in the image, if the current move lower fails and the market begins moving back up, monitor the sell zone entries short.

 

USD/JPY – Move Higher Creates New Demand Zone

Another move higher has taken place today and it’s caused a new demand zone to form on the 1 hour chart of USD/JPY.

aviary-photo_131236966761667767

Similar to EUR/USD, USD/JPY has been moving higher for quite some time now, which means it probably won’t be long before we see some kind of retracement take place. I’m not sure if this retracement will end up terminating at the new demand zone created by today’s move higher or the lower demand zone which formed last week. I think if another move up occurs the retracement will end at the demand created today but if the market begins to fall, I think it will move back to the lower demand zone before reversing and moving higher again.

In my opinion I think you should watch for entries long in both demand zones. The lower zone is favored if the market starts to fall, but you should still keep an eye out for bullish engulfing candles in the zone created today just in case the market does end up turning at that zone instead.

 

AUD/USD – Still Inside Daily Demand

Currently AUD/USD is still inside the daily demand zone it fell into last Friday, the consolidation which was taking place yesterday is still in progress even though a big drop took place a couple of hours ago.

aviary-photo_131236979732433612You can see how the big drop pushed the market down towards the low of the daily demand zone, right now a push to the highs of the consolidation is taking place but it’s looking like this push is going to end up failing which means we could see the market break through the bottom of the daily demand zone later on tonight. If the market breaks through here, it’s a strong indication we are going to see more downside taking place over the next few weeks because it would mean the move up which created the daily demand zone was not caused by the bank traders placing buy trades to make the market reverse, it was caused by them taking profits off sell trades placed during the consolidation the market has been in since the 8th August.

The supply zone created last week is still the main point you need to be watching for entries short, if the move higher we are seeing now continues, it could push the market back up into this supply zone so be on the lookout for bearish engulfing candles.

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