Bearish Pressure On The Euro Rise Amid Negative Service And Manufacturing Data Release.(25th-30th nov)
Lagard, on her first-ever speech as ECB president, pointed out the difficulties that lie ahead for the Eurozone. She said that an increase in public investment would lighten the load on the impact needed from the monetary stimulus currently running. She gave no clear cut plan on her forward guidance, so the market took its cue from the somewhat negative service and manufacturing data that was released on Friday, which caused the Euro to weaken against most majors. We would be looking to trade in line with the current trend of these Euro pairs for as long as they persist.
eur/jpy
Analysis: We began the week mostly range-bound, forming a downward channel. The channel finally broke out on Friday, making a 1st valid push to the downside. Therefore, we are trading for the 2nd push to the downside.
Manipulation Points: Upper – 119.89 & 120.10
eur/usd
Analysis: It also began the week in mostly a sideways price action, forming a clear range, which was then broken out of on Friday. This break out created a first push to the downside, so coming into the new week, we would be trading for the 2nd push to the downside.
Manipulation Points: Upper – 1.1050
usd/chf
Analysis: Here, we had the first push to the upside on Thursday, and a second push up on Friday followed it. So we have a well-established bias on this pair. As a result, we are trading for the 3rd push to the upside.
Manipulation Points: Lower – 0.9946
gbp/usd
Analysis: This pair formed a double top right before the first push down on Thursday. The market then followed this up by a clear second push to the downside on Friday. Given the clear bias, we are trading for the third push to the downside going into the week.
Manipulation Points: Upper – 1.2890
NZD/usd
Analysis The Kiwi has been moving in a sideways pattern for the better part of last week, especially in the last three trading days. So we would be trading an open bias and seeking manipulation points to both sides of the price.
Manipulation Points: Upper – 0.6436 Lower – 0.6398 & 0.6359 & 0.6323
AUD/usd
Analysis: The last two trading days were both sideways price actions. This automatically opens up our bias, so we are trading levels to both sides of the price.
Manipulation Points: Upper – 0.6800 & 0.6833 Lower – 0.6770
gbp/jpy
Analysis: We had the downward push clarified by the sell-off on Friday, which created a valid push to the downside. As a result, we are looking to trade for the 2nd push to the downside going into the week.
Manipulation Points: Upper – 139.85 & 140.08
eur/gbp
Analysis: Fridays movement on this pair retraced over 65% of the push-up, at this moment nullifying any previous bias. So we refer back to an open bias on this pair, trading levels to both sides of the price.
Manipulation Points: Upper – 0.8604 Lower – 0.8546 & 0.8528
Important Disclaimer: At Day Trading Forex Live (DTFL), we have specific entry, exit, and trade management rules that are used for trading these levels. You should not blindly enter the levels without first doing your own research and ensuring you have a trading plan in place.
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Happy Trading
Sterling