Currency Continues To Remain Calm – October 21st 2015 Currency Market Commentary
EUR/USD Fails To Continue Downside Trend
One of the areas that I mentioned in yesterday’s market commentary was the 1.1340 level. The market did provide a valid stop run confirmation short from that level but failed to show any follow through and continued to the upside. When I came back for the start of the NY session I was surprised to see this level break to the upside again. The break below and then back up above that level throws out any confidence I had in further continuation to the downside and keeps the directional bias open for today. Its important to note that this doesn’t mean further downside is out of the picture it just means I will continue to keep the directional bias open and take any setup from the listed manipulation points.
Pound Shows Second Stop Run Of Highs
Early in the European session the Pound made another stop run of the upper listed level. This level produced a nice full profit trade last Friday but today we missed the pullback by about 1.5 pips before the market pushed to the downside. Mechanical trading strategies have a clear bonus in that they remove a major chunk of emotion. The downside is when there is a slight miss on the entry criteria it can keep you out of an otherwise solid trade setup. This is a trade off that I think is worth making, especially for those learning to trade forex.
Anytime you have a clearly definable market range keeping directional bias open is the best option. A solid range also provides clear manipulation points where heavily liquidity is likely located. These levels also provide the opportunity for a backside of the level continuation trade opportunity. This is something I talked about in yesterday’s October 20th 2015 FX Analysis if your unfamiliar.
Forex News For October 21st 2015
CAD Rate Decision 10:00 AM Eastern: Like all rate decision of late the statement is the most important factory to keep in mind as rates will more than likely remain unchanged. Obviously a hike would result in major CAD strength and a surprise cut would result in major CAD weakness.
CAD BOC Press Conference 11:15 AM Eastern: The press conference can often be the most volatile aspect of resent rate hikes as suprise comments are what the market is waiting for.
UK BOE Carney Speaks 1:00 PM Eastern: This is unlikely to be a big event but it would be worth watching if you are in a Pound trade at the time.
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