Failed Follow Though On GBP/USD – 1/12/16 FX Market Analysis
EUR/USD Rejects Lower
All of our trades come from a pre-selected manipulation point. As a result, when we go into a trading day with limited levels or levels that are a long way away from the current price, then we know the potential for a trade setup is limited. As I always say, quality NOT quantity is the key to becoming a successful trader. I find very often that traders who struggle to produce consistent profit often have the mentality that they “have to find a trade”. I highly recommend learning just one setup and then become comfortable with it. Once you do that you can always scale up the quantity by trading more pairs.
For today I will be looking for the second push to the downside in the EUR/USD. I’m reluctant to look for the second push down but the criteria for a first push has been satisfied and rules are rules. At this point we still need to see the entry criteria satisfied which is a stop run of a pre-selected manipulation point. For today I only have one upper level from which I would take a stop run short.
Pound Fails To Give 2nd Push Down
The GBP/USD failed to produce a push down but did give a setup that ended up failing. The start of the year has brought with it a lot of back and forth. While we have only had 6 official trading days we have been hovering around break even for 2016 and continue to do so. With another failed continuation we will go into an open directional bias and take any valid stop run of the listed manipulation points. To start the day we have two upper levels and only one lower level from which we will look for a valid stop run.
Forex News For January 12th 2016
Industrial Production 4:30 AM Eastern: Most forex news outlets list Manufacturing Production as the important piece of data but the market has been showing Industrial Production to be the most important number of the two. Overall these two pieces of data have the ability to create a large spike but the follow through after the spike is quite shaky. If your looking to trade in the direction of the news there has to be no conflict between the two numbers. This month Industrial Production is expected at 0. Overall the actual release has been gradually trending down. A big miss to the downside could bring back the Pound bears.
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