EUR/USD – Falling After Retracement
I just wanted to let you know that today’s market commentary will be the last until the 9th January 2017. I’ll send out the support and resistance levels/supply and demand zones for next week on Monday but that will be it then until the 9th. I’ve got lots of new articles and things coming next year, one should be done by the end of the weekend so look out for that on Monday.
Hope You Have A Good Christmas
Today we have seen the market retrace a little after falling both yesterday and on Wednesday. It’s likely this retracement has been caused by the bank traders taking some profits off the sell trades they placed before the big drop occurred.
The retacement failed to push the market into the supply zone which formed due to yesterday’s drop so there hasn’t been any oppertunites to get short today. We may see a bit more profit taking take place next week, although keep in mind the market could be quite volatile due to there not many traders active in the market. If we see more profit taking then continue to watch for entries short in the two supply zone that have formed over the past couple of days.
USD/JPY – Consolidating At The Highs
We haven’t really seen any movement take place today on USD/JPY, all the market has done is consolidate between yesterday’s high and yesterday’s low. We might see a false break above yesterday’s high take place later on tonight when the US session comes to an end but I doubt it will cause any significant down movement to occur.
AUD/USD – Large Drop Creates New Supply Zone
In comparison to USD/JPY and EUR/USD, today we have actually seen quite a lot of movement take place on AUD/USD.
A big move lower started a few hours ago when the US trading session began. The move has created a new supply zone we can use to look for entries short if the market begins moving back up, but it’s looking unlikely we are going to see this take place before the market closes tonight. Next week watch for entries short in the supply zone that’s formed today’s move lower and the supply zone which formed yesterday. The supply zone that formed today is the stronger of the two zones but still keep an eye on the zone above if the market is able to break through today’s zone.