Market Commentary 14/09/16

EUR/USD – Still Stuck In Between Buy Zone And Sell Zone

Last night the market fell into the buy zone which has kept the price stuck in a range over the course of the week, in the past couple of hours though we have seen the price rise into the zone with the appearance of a bullish large range candle.

aviary-photo_131183412826581154I think we may see the market break the sell zone and move up into the supply zone found above, if it does watch for a bearish engulfing candle to form because if the drop from the supply zone was created by the bank traders placing sell trades to make the market reverse they might not have been able to get all of those sell trades placed which is why they’re now making the market move back up to get more people to place buy trades so they can get their remaining sell trades placed.

USD/JPY – Falling After Making New High

The market has continued to rise after touching the demand zone yesterday, today’s move has managed to break the high created by last weeks drop but we have seen some selling come into the market since the new high was made.

aviary-photo_131183414339219528You can see only 5 hours after the new high was made the market began to fall, I’m not sure if this fall has started because the bank traders are placing sell trades into the market or because they are taking profits off buy trades to make the price drop back into the demand zone so they can get more buy trades placed. Personally I think it’s because they want to get more buy trades placed at the buy zone, but until the market has reached the buy zone there isn’t anything we can do in terms of placing trades.

AUD/USD – Bouncing From Daily Buy Zone

Last night the market fell into the daily buy zone which formed all the way back on the 6th July , so far the zone has only caused a small retracement to occur but I think another drop deeper into the zone is going to take place before a bigger retracement occurs back up to the sell zone seen in the image.

aviary-photo_131183416066604199So far the low of the retracement has not been broken which suggests that maybe a base is building where the banks are taking profits off their sell trades, it could be that some sell stops will start to accumulate below the low from traders who have begun to place buy trades because they think the market is reversing. I think we’ll see a run below these lows before any bigger retracement takes place but whether that will have happened by the end of today remains to be seen.

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