What Will The COT Data Show Today? August 14th 2015 Forex Analysis
Today we will get a picture of whether or not smart money has continued showing buying pressure in the Pound or not. After last Thursday’s news this was put into serious question. The price action that has followed has not shown a great deal of change and in fact is beginning to show strength. Either way what we see should be interesting and I will have a full break down for Monday.
EUR/USD Finally Stalls
The EUR/USD finally stalls and begins to show some reversal. At this point a true reversal has not been validated and therefore I will still remain open on direction. If you read yesterday’s forex market analysis you will know I did not have a lower manipulation point that I was looking to trade from. Therefore as the price moved down today I really didn’t have good level to trade long from. Since the Euro moved down today only there was no trade opportunity.
Pound Continues To Remain Strong
I will still be looking to trade both directions tomorrow as the Pound has again failed to give strong evidence on direction. I do still maintain a bias long on the Pound but again this requires a valid confirmation setup from one of the listed manipulation points.
As far as trades on the GBP/USD today, the Pound surged through our first lower manipulation point without producing a valid entry. It then turned from what I term as no mans land. When the market turns from an area that is not a pre-selected manipulation point then I will not look to place a trade. We are looking for where liquidity is potentially located. Market turn from areas of liquidity and therefore entry setups near these levels becomes a very high probability forex trade setup and what we focus on exclusively. Remember quality is the key, not quantity.
Forex News For August 14th 2015
US PPI M/M 8:30 AM Eastern: The follow through on this news is very weak the majority of the time. With that being said it has been able to spike the market by 15 pips a few times and therefore I would not be carrying a trade into this news event. Tomorrow’s release is expected at .1
US UoM Consumer Sentiment 10:00 AM Eastern: This is another news item that has been able to spike the market by 15 pips but just barely. I would consider holding a trade into this news if I had a few pips of clearance. If I was at break even or negative at the time of the release I would be closing the trade before hand. Today the news is expected at 93.3
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