Analysis of the high probability opportunities for this week in Forex, Indices & Commodities.
Click on the video to watch the full breakdown
Forex trading – or any trading for the matter – involves flexibility in thinking and action.
If you see something that’s contrary to what you originally anticipated, change plans and adapt.
As Bruce Lee said: “Be like water.”
For a while now we’ve been bullish on the dollar and have outlined opportunities according to that. But with such a strong market, inevitably we expect a retracement to kick in at some point. That week has come. Last week NFP created a kick of retracement.
But remember, the higher timeframe is still bullish. Therefore the NFP action is temporary – at least for now. So the plan adjusts in accordance to that.
Therefore, the position now on dollar overall is: short-term bearish, longer-term bullish. The reference points have been marked on the chart (see the video) and we stay with our course, until proven otherwise.
Similarly to USD, the JPY has also left a wick and indicated its intended direction. We’re biased towards weakness in XXX/JPY pairs. Even despite the fact that we are at extreme highs on them…
The carry-over charts that are still looking high probability are EUR/GBP and NZD/CAD. Watch the video to understand why. The very higher timeframes mean that, even if you were to take a loss (and you may have last week), it’s worthwhile keeping track and finding another opportunity. The odds, and the risk-to-reward, are in your favour.
…And yet, no matter what you see, always leave the possibility that the markets may shift in an unexpected way. In those situations, remember Lee’s words of wisdom.
In this video we go over these opportunities for the week:
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the associated risk.)