Calm Before The Storm (ECB, BOC Await)
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Calm Before The Storm (ECB, BOC Await)

Authored by Ivan Delgado

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.

Let’s get started…

Scan Of The Markets

To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket. 

As one could have anticipated, it was a quiet affair in financial markets on Monday due to the long weekend in the US and Canada. The news flow was probably as light as it gets and that was reflected in the tepid price action that formed. As a result, we are still faced with a low number of trending markets in the higher timeframes (watch video).

The exception and main mover was the GBP, sold from the get go in London as fears of a no deal Brexit returned. UK PM threatened to walk away from UK-EU trade talks if no agreement is reached before October 15. UK PM Johnson said: “If we can’t agree by then, I do not see that there will be a free trade agreement between us, and we should accept that and move on”. The game of brinkmanship continues.

Meanwhile, the Swissy keeps extending its losses from last Friday just as the Canadian Dollar reinforces its short-term fortitude ahead of Wednesday’s BOC. In the most heavily traded currencies (EUR & USD), both are treading water ahead of the high-stakes risk event by the former as the ECB meets on Thursday. Watch the Aussie as well, with decent demand found since the US NFP-led bottom.

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Insights Into Market Studies

In this video analysis I dissect the information above. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter and manage a position, hence the video is intended as educational in nature and not financial advice. 

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Recent Economic Indicators & Events Ahead

 

Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

Important Footnotes

MARKET STRUCTURES

Markets evolve in cycles followed by a period of distribution and/or accumulation. To understand the principles applied in the assessment of market structures, refer to this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM 

In order to assess the market momentum of a particular asset, I’ve promoted for years the idea of using what I call the smart money tracker. The settings and the indicator can be obtained via our Discord room, where traders from all walks of life interact frequently. In this video I lay out the elements I look into to call trend directions.

PROJECTION TARGETS

The usefulness of the 100% projection resides in the symmetry and harmonic relationships of market cycles. By drawing a 100% projection, you can anticipate the area in the chart where some type of pause and potential reversals in price is likely to occur, due to 1. The side in control of the cycle takes profits 2. Counter-trend positions are added by contrarian players 3. These are price points where limit orders are set by market-makers. You can find out more by reading the tutorial on The Magical 100% Fibonacci Projection