EUR/USD Fails To Make Third Push – April 18th 2016
EUR/USD Fails To Give Third Push Lower
As far as a directional bias is concerned I do still favor downside for the EUR/USD but we do not have a market cycle. Friday we were still looking for the third push to the downside when never materialized. When we came into our first upper manipulation point we did have a very nice stop run but our trade management rules kept us out of the setup given the 10:00 AM economic data. This ended up being a protection as the market continued further to the upside which illustrates the reason our news based rules are in place. After two consecutive days of failing to give the third push to the downside our directional bias open up and we officially have one upper and one lower level from which I would take any valid stop run from.
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Range Continues In Pound
Looking at the COT data, the Pound is still showing pressure to the downside. Overall the GBP/USD is definitely coming to a decision point which you can see if you go out to the 4H or Daily chart. As you can see the price has gradually been setting lower highs and compressing against a floor of around 1.4020 area which is a huge medium term line in the sand. At this point, I do still favor downside on the GBP/USD but we do not have an official market cycle which means we can trade either direction based on whether it is a stop run of an upper or lower level. At this point we have one upper level and two lower manipulation points from which to take any valid stop run reversal. For members, be sure to watch the video daily market preview for more information on a backside short option that I went through in further detail.
Forex Market News For April 18th 2016
We have no scheduled data I will be looking to avoid today.