EUR/USD – Current High Almost Broken
EUR/USD is currently close to breaking through the current high which formed yesterday morning, if the market manages to break this high it’s a sign we are likely to see more up-movement take place next week.
The market did end up entering the supply zone which I said to watch for entries short if the market continued to drop after hitting the demand zone in my previous market commentary. Since the drop didn’t continue it means the supply zone was not suitable for trading, even so, a drop still took place when the market entered the zone but this drop was not enough to cause the market to reverse. Over the past couple of hours we have seen the market re-enter the supply zone and I think it won’t be long now before this zone gets broken and we see the price continue moving higher towards the daily sell zone at the 1.12000 level.
For now it’s best to wait until Monday to see what the market does, if it’s broken through the high then we can begin looking for entries long into the daily sell zone, if it’s broken through the low then it might be time to begin looking for entries into short trades.
USD/JPY – Consolidating Inside Daily Buy Zone
Today USD/JPY has remained inside the daily buy zone it re-entered yesterday morning. Tuesday’s high has still not been broken which means the demand zone seen at the bottom of the image is currently not valid for trading.
I think we are probably going to see the market continue to consolidate over the course of the next few hours. It’s unlikely we’ll see the market break through Tuesday’s high by the time the market has closed tonight, due to the fact it’s late into the day and the banks won’t want to cause big price changes to occur before the weekend begins.
I suggest you wait until Monday before placing any trades, there just isn’t enough evidence at the moment to determine weather the market is more likely to move up out of the daily buy zone or move down through the zone.
AUD/USD – Falling After Hitting Supply
In the early hours of this morning AUD/USD spiked the supply zone seen inside the daily sell zone, the market is now falling and I think we might be seeing the beginning of a reversal lower.
If the move down we are seeing now continues, we could see the market fall all the way down to the daily demand zone seen at the bottom of the image. The supply zone I’ve marked with black lines is a point we can use to look for entries short if the market continues to move down through the low of the candle which formed a couple of hours ago.
A break below this point would suggest further downside on Monday and would also give us more evidence the market is reversing down to the daily demand zone. If the market doesn’t continue it’s fall, expect another move up to take place into the supply zone the market spiked into earlier today.
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