Last Friday I only caught that 20 pip sell and missed out on the entire bull move for various reasons. OH WELL.
Cross posted on cable update, broad thoughts on next week:
Possible bank holiday tomorrow and/or some hungover traders on Monday so watch out
Bulls took control and formed a double bottom on the institutional demand level around 1.3740. This was the level that created an explosive move up on the 16th of April when the MPC made an announcement so this is a smart money zone. With that said bears have made several attacks down here but was firmly rejected again on Friday
DXY also consolidating at a weekly supply level, my broad expectation is a move down now, perhaps some retrace first so this can translate into a bull week coming up on cable. The major plot twist here is the CPI figures on the 13th, I can't see us taking out the weekly level but can never rule out another spike above the recent highs, anything can happen. The dollar has a lot of space for a freefall now. We have to be aware that Treasury yields are falling sharply which should create a reduction in demand on the Dollar. I think this is just part of a quarterly rebalancing of institutional portfolios into fixed income myself. Check out this interesting article on zero hedge with some theories.. not sure I believe any of these but still interesting: https://www.zerohedge.com/markets/he...reasury-yields Gilt yields also saw what looked like a technical retracement on Thurs/Fri which helped GU bulls
I'm a price action scalper so take these HTF observations as just that, observations and levels/scenarios for me to watch out for, trying to predict the exact movement of markets is certainly not in my wheelhouse, I just react to what's happening on the day being aware of the institutional levels that drive buying and selling. As ever expect the unexpected
First area of interest is 1.3840-1.3824 for buying. This was the zone that wiped the last of the sellers in the mid 1.38s. Around 1.3788-1.38 is not out of the question for a buy too. First target might be 1.3955-87.
Cross posted on cable update, broad thoughts on next week:
Possible bank holiday tomorrow and/or some hungover traders on Monday so watch out
Bulls took control and formed a double bottom on the institutional demand level around 1.3740. This was the level that created an explosive move up on the 16th of April when the MPC made an announcement so this is a smart money zone. With that said bears have made several attacks down here but was firmly rejected again on Friday
DXY also consolidating at a weekly supply level, my broad expectation is a move down now, perhaps some retrace first so this can translate into a bull week coming up on cable. The major plot twist here is the CPI figures on the 13th, I can't see us taking out the weekly level but can never rule out another spike above the recent highs, anything can happen. The dollar has a lot of space for a freefall now. We have to be aware that Treasury yields are falling sharply which should create a reduction in demand on the Dollar. I think this is just part of a quarterly rebalancing of institutional portfolios into fixed income myself. Check out this interesting article on zero hedge with some theories.. not sure I believe any of these but still interesting: https://www.zerohedge.com/markets/he...reasury-yields Gilt yields also saw what looked like a technical retracement on Thurs/Fri which helped GU bulls
I'm a price action scalper so take these HTF observations as just that, observations and levels/scenarios for me to watch out for, trying to predict the exact movement of markets is certainly not in my wheelhouse, I just react to what's happening on the day being aware of the institutional levels that drive buying and selling. As ever expect the unexpected
First area of interest is 1.3840-1.3824 for buying. This was the zone that wiped the last of the sellers in the mid 1.38s. Around 1.3788-1.38 is not out of the question for a buy too. First target might be 1.3955-87.
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