www.TheLFB-Forex.com A Forex Trader Portal
European markets are showing the possibility that a positive period of equity trade will wrap up the last trading day of the week, as well as showing both oil and gold trading at the week's high prices. All of which should lead to a move into stocks, out of bonds, into commodities, and out of the dollar. TheLFB trade team note that some market variables are in play.
The trade plan numbers are close to getting hit on most of the pairs, but our concern in signaling anything here is four-fold.
1. In thirty years of forex trade, including the recent credit crisis, we have not seen many times when the one hour charts look as violent as these in regard to size of candles, as well as the severity of reversal.
2. Equity markets have literally been spinning on a dime from hour to hour in regard to direction and sentiment.
3. In all of June the global markets have moved in value, yet have been all over the charts each day, unable though to actually get anywhere.
4. There is no volume. Simply put, the markets can move anywhere, any time, any how, because of the lack of volume that is not allowing the break-outs to hold, but allowing intra-day reversals to come out of nowhere.
Volatility is what all traders need, but on an intra-day basis this has got to extreme levels. We are fine with that so long as we accept this is an intra-day trader's market, and one that needs to be constantly monitored, they said. The bottom line is; we do not trust this set-up to hold, and as such will not be posting a signal until the live cash equity market is underway. Now, that may have been a long story, just to get to the fact that we are not posting a Signal as yet, but we really need to express the fact that these conditions are the exception to the rule, do not last for too long, but can be detrimental to a trader if they are not fully understood.
The Market Outlook area updates the major pairs intra-day set-ups for those traders looking for some quick trade ideas, and hopefully that can fill the void whilst we wait for a little more stability to hit on Friday, the trade team said.
|Mixed Trend. Trading above 1.4000, the 20 day SMA, a long play is happening that may run into next week if this area can now hold as support, with the 1.4150 and 1.4250 price points as potential long targets. Look to at break of 1.3950 for the short side view if equities collapse, targeting two 30 pip runs to 1.3890 area.|
|Mixed Trend. Trading again at the 20 day SMA, with 1.6350 as support. Looking to test long bids if equities move higher, from 1.6450 to 1.6520. The pair hit 1.6250 and bounced again; there are a wall of buyers there. The short side is from 1.6350 to 1.6290.|
|Mixed Trend, look both long and short. Now absorbing orders at the 20 day SMA 0.8000 price point as support, with 0.8120 the long target. Looks to have found a base at 0.7950; breaks under that area pick up 0.7850.|
|Mixed Trend, look both long and short. The 1.1520 50 day SMA area is getting taken out as support. Short side numbers are 1.1470 to 1.1300. Following oil prices around, and oil is going higher.|
|Mixed Trend, look both long and short. Now using the 1.1050 50 day SMA as resistance, and the 20 day SMA at 1.0800 as support.|
|Mixed Trend, therefore look to buy the pull-backs, or sell the break-outs. Major resistance at 96.50, good support at 94.50.|