View: Blanks of the trader
Blanks of the trader
It has been clearly week dominated by fundamentals last week, especially ECB decision to cut rates that took many traders by surprise and NFP numbers. At the times like these there is no way to ignore fundamentals that are clearly driving price action. The anticipated earlier slowdown did not really happened as volatility was maintained by earlier mentioned events, therefore i thought it will be useful to share some info to sharpen traders awareness of the major dates that are very relevant especially in FX space. Although technical traders do not take decisions purely on this info, being aware of upcoming events always helps to stay away from upcoming storm. Sites likethis
provide very useful info and comprehensive that can guide traders through the weeks like the one we had. Having said that to fully take advantage of those numbers, traders need to have some context and not just rely on pure numeric values.
In terms of the setups from last week EUR/USD long call @1.3470 got more strength at the start of the week testing this area at least once more and making this entry a valid trading signal. I had my long entry at this level, as the week progressed and price action was ways of my first target and still much above break even point, weekly PUT Option @ 1.34 level become affordable to get into. As later events unfolded that proved to be right call as this pair ended a week lower than 1.34 level, covering initial loss on the long entry.
Looking ahead into my watch list for the next week, there are two very early setups at the moment. French CAC40 index has potential to form bullish Cypher pattern @4014 level. About 120 pips of risk has to be taken on board, to be relatively comfortably involved in this setup in my book.
GBP/USD Fx pair has weaker potential bearish signal. What may look like Gartleys pattern did not touch 0.681 fib retracement level of XA leg, therefore only AB=CD setup comes into place. As it stands now the range of this market is too wide to have comfortable stop in my book, however if will see more moderate candles on the way up, this may be good opportunity to short @1.6176's area.
Have a good one traders!
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