Market Commentary 30/08/16

EUR/USD – Deeper Drop Into Daily Demand Zone

Today we have seen the market drop deeper into the daily demand zone which the market initially spiked yesterday.

Aviary Photo_131170408967341977I was hoping the spike would cause the market to enter the supply zone marked in yesterday’s post but instead the price ended up turning just before the zone could be reached. The down-move that followed is what has caused the marked to drop further into the daily demand zone. We can see that currently a bullish pin bar is starting to form inside the daily demand, it’s possible the pin will push the market up back towards the supply zone, this will allow us to begin looking for entries short into this downwards momentum.

 

USD/JPY – New High After Hitting Demand Zone

Last night USD/JPY fell into the demand zone which I marked in yesterday’s post and the resulting move up has managed to break the highs of the sell zone.

Aviary Photo_131170415581005023

The market fell into the zone late last night so it would have been difficult to get a trade a buy trade placed if you live in the UK  or Europe. When the market did enter the zone a bullish engulfing candle formed on the 15 minute chart which you could have used to get an entry long if you were still awake when the market fell into the zone. From here the market proceeded to rise out of the demand zone and back into the sell zone where yesterdays retracement began.

It’s likely this sell zone will be broken quite soon possibly by the end of the week, I don’t think it has the potential to cause this retracement to come to an end especially after such a large move higher took place last week. We may see the market fall out of the sell zone and back into the demand zone, if it does watch for bullish engulfing candles to form because this demand zone is still valid as it marks a point where the banks have got buy trades placed into the market.

AUD/USD – Falling To New Lows

The retracement which began yesterday due to bank traders taking profits off sell trades is now over with the market breaking the low of the retracement just over an hour ago.

Aviary Photo_131170440178825503The market didn’t end up entering the area which I said to watch for entries short in my last post, instead it consolidated below it before making a sharp move down which was followed by a quick spike up back into the newly formed sell zone. This sell zone is our new point of interest in the market, if you see a move higher take place this zone is where you want to be looking for entries short as it’s highly likely the banks have got sell trades placed here and they may want to get more placed into the market before the down-move continues.

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