Tuesday Technical Analysis update of the high probability opportunities for this week in Forex, Indices & Commodities.
Click on the video to watch the full breakdown
Let’s start today with not one, but two tips, when trading NFP week:
(1) Place more emphasis on charts not associated with/linked to the dollar. That’s because they are less affected by big news out of the USA, and so are more likely to provide cleaner setups with less unpredictable volatility. (Key word is likely)
(2) Trades at the beginning of the week are more likely to be an easier ride. Typically, the closer you get to the actual release of the news, the less the market moves. This is the case for any currency. But particularly for USD, as this is the world’s most traded one. The reason? The big players in the markets need to have an accumulation of orders, before they can successfully see enough money in the market of participants who are ready to take the other side of their trades.
The other thing you may notice with experience, is that the longer the accumulation/range/consolidation in the market goes on for, the more explosive the move is after the news.
As it stands today, these are the ‘cleanest’ movers for the week, based on price action:
EUR/CAD, EUR/GBP, NZD/CAD.
However…. keep in mind the multitude of EUR-based news/calendar events…
As suggested at the beginning of this week, if you’re unsure, this week is definitely the time when it’s best wait for the market to indicate its desires first, to play its poker hand first, before making your decision of what to do next.
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.)