VIX and US futures along with risk currencies confirm shift in sentiment

VIX and US futures along with risk currencies confirm shift in sentiment

by Anna Coulling Comment Closed
As the London forex session gets into full swing, sentiment is clearly displayed on the VIX which is trending lower as risk on sentiment returns with equities push ing higher on US futures markets. And of course currency flows from the yen and other risk currencies confirm the picture. https://youtu.be/svEykuvd-J8...
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Muted reaction to NFP for equities

Muted reaction to NFP for equities

by Anna Coulling Comment Closed
Fundamental news is often cyclical and the importance of one type will vary according to where we are in the economic cycle. In addition, such items may be overshadowed by more prescient news, and this is certainly the case at present with Coronovirus dominating world headlines and driving fear in the markets. So it was no surprise to see the monthly NFP release have little impact on US indices, which paused momentarily before continuing their journey South as we can see across the three sisters here of the YM emini, the NQ emini and the ES emini. Note the weakness in the reaction higher on the 5m charts to the top of the image. You can discover more in my FREE forex webclass where I cover this in more detail and teach five trading ideas to help you in your own forex trading. You can join me by clicking the link here http://bit.ly/3cB64cH  ...
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NZD/USD strongest this morning

NZD/USD strongest this morning

by Anna Coulling Comment Closed
As I mentioned yesterday history will judge whether this week's action by the FED was prudent or foolish but what cannot be denied is the effect on the US which is free fall and looking to move towards the 96 price point. This makes today's non farm payroll release even more important as a strong number should give the USD some support. The weekly chart for the DXY shows the extent of this week's move as well as the downside levels ahead. And it's the nzd/usd which has been the strongest of the majors this morning as we can see on the charts below. Check out my free web class for 5 lessons you can apply today: http://bit.ly/3cB64cH   ...
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Weak AUD/JPY signals return to risk off

Weak AUD/JPY signals return to risk off

by Anna Coulling Comment Closed
It's been a day of weakness for the Aussie yen as risk-on sentiment evaporated once more, with markets remaining fragile and nervous as each day reveals fresh news on the current virus sweeping the globe. As a barometer of risk the AUD/JPY is always one currency pair that reveals this sentiment clearly, with the Aussie dollar considered a risk currency and the Japanese yen a safe haven. This weakness was signaled earlier in the week with the failed effort to rise on high volume and now followed by a bearish engulfing candle. I explain this in more detail in my free forex webclass - click to join here...
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Great VPA lessons on the CAD/JPY

Great VPA lessons on the CAD/JPY

by Anna Coulling Comment Closed
Some classic price action on the CAD/JPY daily chart and in particular several volume price analysis lessons to take away. First, note the volume anomaly on the wide spread up candle. Volume is average and therefore the market makers are not participating as the trap is prepared. Clearly volume and price are not in agreement and a sure signal of weakness ahead. The price waterfall duly develops and note the rising volume in a falling market confirming the strength of the trend. Finally in the last few days we have had a two bar reversal on good volume with the currency pair looking weak. And remember, the Canadian dollar is closely associated with oil and with the recent fall in oil prices, this has also been reflected in the currency and one of the topics I cover in my free forex webclass. I explain this in more detail in my free forex webclass - click to join here...
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Crossover session traps

Crossover session traps

by Anna Coulling Comment Closed
The crossover sessions in forex occur when trading in one timezone closes and another opens and can be a very dangerous time for traders. Why? Because this is where insider traps are set. The London open always is a fertile ground and there was a great example on the usd/jpy. Heavy buying in the pair on the previous day resulted in a nice move higher in Asia with the pair moving into consolidation ahead of the London open. Prior to the open the pair started to move higher on reasonable volume but reversed lower at the open on high volume until the hammer candle, again on high volume pushed the pair back towards the consolidation (the yellow line on the chart). I explain this in more detail in my free forex webclass - click to join here...
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