High Vol FX Moves, EUR & GBP Main Movers
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High Vol FX Moves, EUR & GBP Main Movers

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.

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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. 

The big story of the day, aside from the ECB policy meeting, which ignited punchy movements in the Euro, was the continuous hammering of the British Pound. The US equity space, after a promising start, ended up succumbing once again, which in turn assisted the likes of the Swissy, Yen and USD to be bought up.

With regards to the Pound, the selling can be single-handedly attributed to real fears kicking in in the Brexit front as the EU issued an ultimatum to the UK over its Internal Market Bill intentions. The EU didn’t like a bit the move by the UK to rewrite parts of the withdrawal agreement it signed in January, and either the UK withdraws the bill by the end of the month or it will face legal action.

The European Commission said that the UK had “seriously damaged trust” and trade talks were at risk. What’s most concerning is the fact that Cabinet minister Michael Gove said the UK is not willing to meet such expectations by saying that he had made it “perfectly clear” that the UK government “could not, and would not” change the bill.

As per the ECB, the policy settings was unchanged, leaving the deposit rate at -0.5% and equal levels in QE programmes. The ECB upgraded ever so slightly its growth projections as well as inflation forecast. No surprises there. Commenting on the EUR appreciation, Lagarde said “in the current environment of elevated uncertainty, the Governing Council will carefully assess incoming information, including developments in the exchange rate, with regard to its implications for the medium-term inflation outlook.”

Once Lagarde took the stage as part of the Q&A, the main take-away is that the ECB is unlikely over-react to a strong Euro, noting they are “carefully assessing” but without any strong wording that would suggest the levels it trades at are the main focal point to calibrate monetary policies in the short-run. The Euro did well for the most part of the ECB event and it finished the day close to being the top performer.

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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