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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The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.
The overall dominance of ‘risk on’ dynamics in financial markets continues to be better expressed through the trading of currencies, where the US Dollar and the Japanese Yen remain on the back-foot, as opposed to the more lethargic yet predominately bullish picture in equities, where the S&P 500 saw a late selloff to end up neutral.
Heading into the late stages of Thursday, risk had been on a steady climb amid a sharp fall in US continuing jobless claims (V-shaped recovery anyone?) and renewed positive sentiment that the EU €750bn recovery fund proposal will eventually see the light. However, the gains were offset by a late-day setback in US equities after Trump announced that he will be giving a press conference about China on Friday.
The firm risk tone that had prevailed until then was dialed back in a move that rather than having connotations of panic is more about re-positioning as manifested by the calm fluctuations in the VIX (fear index). The jury is still out on what measures Trump may use to sanction China in response the country’s aggression against HK’s democratic right by inserting a controversial national security law.
If China, as many fear, use the law to make heavy-handed arrests, then for the U.S. “the long-term endgame could be the biggest disruption of the relationship since Tiananmen,” Derek Scissors, chief economist at China Beige Book and an AEI scholar, told MNI.
With the most pressing fundamental issues driving markets of the way, let’s now investigate the main takeaways in the charts.
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This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.
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 the tutorial How To Read Market Structures In Forex.
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.
Unlike levels of dynamic support or resistance or more subjective measurements such as fibonacci retracements, pivot points, trendlines, or other forms of reactive areas, horizontal areas of support and resistance are universal concepts used by the majority of market participants. It, therefore, makes the areas the most widely followed. The Ultimate Guide To Identify Areas Of High Interest.
It’s important to highlight that the daily market outlook provided in this report is subject to the impact of the fundamental news. Any unexpected news may cause the price to behave erratically in the short term. Monitor the event risks via Forexfactory.com & refer to Fundamentals vs Technicals In Forex.
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