Market Commentary 23/05/17

Guys, my sincerest apologies for not giving you the market commentaries for the past few days. I’ve had some issues with uploading new posts onto the site , so haven’t been able to put the daily market commentaries up. Luckily I’ve managed to get everything fixed now, so the posts will resume as normal from now on wards.

EUR/USD – Consolidating At Highs

Yesterday we saw the market move up and break to new highs, after retesting the point where the previous high was broken last Friday. Today we’ve seen the market consolidate at these new highs, but I think there’s a chance we could see a deeper retracement take place over the next few hours.

The reason I think we could see a deeper retracement occur, is because the retracements we’ve seen occur over the last few day’s have been getting closer and closer together. This suggests the bank traders are taking more and more profits off their trades, maybe because they want the market to fall so they can get more trades placed, or possibly because they plan on getting sell trades placed to make the market reverse. It’s not possible to tell which it is at the moment, but if you do see a deeper retracement occur, the demand zone found closest to the current market price is the point you want to be watching for entries long, as it’s the most recent point where the bank traders have got buy trades of their own placed.

USD/JPY – Stuck In Tight Consolidation

USD/JPY is currently stuck in a really tight consolidation that began at the end of last week. We have seen the market drop slightly today and break yesterday’s low by a couple of pips, but the consolidation has pretty much just continued, albeit at a slightly lower price level.

I’m not too sure which direction this consolidation is likely going to break out of at the moment, so for now I recommend you just wait for more price action to form.

AUD/USD – Moving Towards Daily Supply Zone

The up-move which began on AUD/USD last Friday has continued today, and it’s now starting to look likely that we are going to see the market move into the daily supply zone found between the 0.7552 – 0.7587  levels sometime within the next few days.

Over the past couple of hours we’ve seen the market drop slightly from the high it made earlier on in the day, but I think this will just turn out to be a small retracement that will terminate before the market falls a large distance. As far as trades are concerned, there isn’t anything I can recommend at the moment. The demand zone seen at the bottom of the image should be watched if a large drop does occur, but I don’t think we’ll see that tonight, so just monitor the price action for now.