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.
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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.
On the back of a surprising drop in the US jobless rate, which is what stood out from an otherwise in-line US jobs report, equities and forex went for a wild ride with some pronounced V-shaped type movements that make the technicals reads challenging.
The net effect was a second red day for equities in the US although judging by the performance in FX, you wouldn’t think the sentiment in equities took another hit as the CAD ended topping the climbers’ board while the Swissy underperformed.
Technically, these markets remain way more erratic than a few weeks back after a noticeable shift in sentiment that has resulted in short-term flows heading in the opposite direction of the longer-term trends. This makes finding congruence between 4h and daily charts hard, hence going one step lower in time scales (1h and 4h) makes sense. Watch today’s video for an example of what I mean.
On Friday, we also saw Fed Chair Powell re-emphasize the slowdown in the US recovery, speaking to National Public Radio, even if he welcomed the jobs release as a positive input. “Today’s jobs report was a good one,” he said, but then cautioned that “to get us back to full employment, we’re going to have to get the disease under control.”
Powell added: “The recovery is continuing; we do think it will get harder from here,”. Powell reiterated that rates would remain low for a long time as in years to come, adding that “it’s likely we will need to take more stimulus measures over time.” .
Be reminded that is a long weekend in the US and Canada as they celebrate Labour Day, so if you aim for some action in FX, the London session is your best bet to engage in speculative trades. This week, the ECB and BOC meeting are taking center-stage, alongside Australian jobs as well as jobless Claims and CPI in the US.
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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.
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!
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.
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.
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