Good day everyone. Hope you all had a good weekend. I just want to summarise what is install the remaining of October. It has been plentiful opportunities on the GBP pairs and also on the Euro. BUt I don’t want to get it into more deep than just a gist of what’s going on and what will or may happen.
Here is a EuroUSD weekly chart. Currently it had been penetrating the level deep. But it turn and closed for the week with a Pin bar inside the supply level. 2 things could happen.
1. Continue selling from this week to next week. It could be the start of a bearish trend. Providing USD index continues to rally.
2. Any rally could be forcing the market high enough for the big institutions to sell. WHich could bring opportunities for those who are late in the trade.
Deep penetration could also mean one thing, It could potentially fail and continue rallying. But for the sake of the supply being intact, let’s decide that it will drop further.
The 1.3400 zone could be a potential first obstacle, which could attract demand. Its down to the price action what will happen once price reach that area.
If that area broke, then that will be the end of the bull trend.
For the GBP, last week drop forms a newly fresh supply which could be a good potential short if the price decide to correct next week. If. If not then I would wait for an additional short .
Ignore the Supply demand indicator. There are all over the place. Not all of them are highly correct but forms a good place to either made a new entry or as means of my SL movement for trade management.
Overall, I am seeing both of this pair could go for a bear trend for the rest of the month. Here is the USD index.
The bullish engulfing price action tell us American dollars is starting to buy. Possible the shut down could be a form of price manipulation. or any Late nfp numbers that shows strong could propelled it if at the same time the fed government re open.
Theoretically fundamental view. we’ll see about it next week.
So that is my simple summary for the weekend for a food for thought. Manage your risk wisely and trade with a well organised plan.