Pound Completes Expected Push Down – Forex Commentary 4/7/16
EUR/USD Gives First Push Up
We had a very nice first push to the upside in the EUR/USD. Therefore today we will be looking for the second push to the upside. In regards to cycle I always like a cycle that starts from a range. The reason I like a cycle that starts from a range is because it gives you something I call ‘context’. What I’m referring to is, what about information from the previous price action can help us with the current market cycle. The reason a range is so helpful is because you know there was no running cycle and therefore the first daily push and close outside the range is your first push more than likely. In regards to this specific first push, which is always preferred, is the fact that is started with a stop run of the lows. This stop run of the lows also produced a nice full take profit trade for us today as well. For today I will be looking for the second push to the upside and at this point I have only one lower manipulation point listed to get a valid stop run long. As always, cycle is NOT a reason to take an entry and we still need to see a valid stop run and confirmation from a pre-selected manipulation point to trigger a trade.
Pound Completes Third Push Down
In yesterday’s FX daily forecast, we were looking for the third push to the downside which we got. As I mentioned above, cycle is not a reason to enter the market and officially we did not have a valid stop run to catch the third push down. When a cycle comes to an end we go back to day trading with an open directional bias which is exactly what we are doing today. To start the day I have one upper and one lower manipulation point. If the second push on the EUR/USD does come together we may very well blow through our one upper level. If that is the case keep in mind that level would also be a valid location for a backside stop run reversal trade long.
Forex Market News For April 7th 2016
Strangely enough we have two days in a row with no scheduled data to be concerned about. There is a unscheduled Draghi speech that will happen at some point so be sure to watch the news outlets for any info on when that speech may be scheduled for as that is something you would obviously not want to be carrying a Euro trade into.