Silver Continues To Soar On USD Weakness – FX Forecast 3/18/16
Did you see the latest article that was posted 2 days back. I just posted the 9th consecutive month end review, and the 9th consecutive month end review that was profitable. This 9th month brings us to a compounded gain of +195% off of a 2% risk per trade. I show how each level a trade was produced from was selected to the pip in the members daily market preview video you see me mention. The blog post is titled Advanced Forex Bank Trading Strategy Results – January 2016 and I would highly recommend buying out 20 minutes to watch the video in full.
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The EUR/USD Rallies On USD Weakness
Both the Euro and Pound had very similar moves over the last few days. Both started with a news based push which means we cannot trade it with a cycle bias. Additionally, both are exceeding the ADR from a move supported by USD weakness. The improvement today over yesterday, is the levels we have to work with. If you read yesterday’s daily forex forecast you no doubt saw the lack of levels. As I said in tonight’s daily market preview, a day like that with no listed levels within the ADR might only occur 2-3 times in an entire year. Therefore don’t make any stupid decisions on the extremely rare days that is does occur as sitting on your hands is often the best option. Today the EUR/USD has both 1 upper and 1 lower level that is within reach. The upper level would also be good for a backside long option should we see a clear break higher through that point. Additionally a backside short off of the lower level would be an option as well. This gives us 4 different trade options off of the two listed levels.
Pound Has 2X ADR Upside Move
The analysis for the Pound will be pretty short because I could simply copy and paste what I wrote above about the Euro. The big difference is the lower level for the GBP/USD. Unlike the EUR/USD, on the lower level for the GBP/USD we would not be able to take a backside short. This is a little too long to explain via text but essentially this gets into our trading plan rules for how we disregard levels. For those of you who are members, if your not sure what I’m referring to please watch the video preview from tonight as this is an important point I break down fully. The upper level on the GBP/USD would still be good for a backside long as long as you have enough room to hit a full take profit before the ADR is hit. At this point you do, but if the price were to push down lower it would bring the upper ADR down with it as well and that could potentially rule it out so be sure to check this first if it did setup.
Forex Market News For March 18th 2016
US UoM Consumer Sentiment 10:00 AM Eastern: This is right on the verge of being a news event that I would carry into but we did have some past moves that created a 15+ pip spike and therefore at this point that means I will avoid it. This brings up an interesting point between the Euro and Pound though. This has never spiked the GBP/USD more than 10 pips so I would more than likely carry a GBP/USD trade into this release as the EUR/USD has been the only one hitting our 15+ pip spike rule. For this month 92.2 is the expected number.