Dean’s patience paid off yesterday. He got a number of trades right and demonstrates the importance of homework on the weekend. A couple of minutes can really yield some fantastic results when trading FX. G20 meeting taking place this weekend and this could cause some event risk.
Dean will be publishing his thoughts again this weekend so subscribe to our YouTube Channel to be alerted as soon as it is available.
Dean's Daily FX Update – 09 September 2016
Dean was not going to get involved in the EURUSD yesterday with the ECB meeting taking place. Always a volatile time for this FX pair as the comments are often more important than decision itself. Forex traders wait for clues as to what the policy makers are thinking. Dean looks back on the week and the importance of having a plan in place. You get a chance to look at the markets without them moving and it often gives you a clearer picture.
1.3375 was Dean’s resistance level in Cable (GBPUSD) and once we got to that level he was looking for reasons to get short. There was divergence forming and the candle stick analysis revealed and opportunity to sell around 1.3410.
In the AUSUSD, we had put in a resistance level around 0.7690. A small overshoot and then a huge bearish engulfing candle and evident divergence gave Dean a great reason to sell short. EMA’s and MA’s turned and ticked a lot of the boxes.
The NZDUSD got up and touched our upper resistance level at 0.7485 and candle analysis would have given you your first clue to sell.
The USDCAD also offered opportunities as we traded into our area of support at 1.2840. Analysis showed a pin needle formation and another 60 or so pips was on offer.
The last pair is the USDZAR, at the start of the week Dean had levels of 14.72 (resistance) and 13.78 (support). At 14.75 the market started to move lower and we got to 13.82 before rebounding.
Dean really values doing his forex market homework on a Sunday. It helps him determine the areas where he needs to focus on and look for opportunities in the Forex pairs he watches. Look out for his video on Sunday. Feel free to visit the Market Review Section.
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