Risk On Prevails, GBP Goes For Wild Ride
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Risk On Prevails, GBP Goes For Wild Ride

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. 

There were two dominant factors steering the narrative lane in financial markets. On one hand, hopes for a US fiscal stimulus which by the end of the day were all but dashed even if US equites ignored it for the most part. On the other hand, the Brexit saga has come to its final stage and plenty of speculation in both front (deal and no deal) meant wild vol for the Sterling but no precisely conclusive in directional bias.

The USD and the JPY followed the very analogous script that has played out since the start of the week by losing further value while Gold and the Aussie continue to shine as part of this week’s micro relief rally that we are seeing in these to assets. The Kiwi follows them even if a notable laggards by comparison. The Euro, the Swissy and the Canadian Dollar were mostly unchanged when aggregating the flows.

Heading into today’s trading, the main event is without a doubt going to be the September US Non-Farm Employment Change, which happens to be the last before the 3 November US election. Estimates point at a number in the 900k jobs gains vicinity following just over 1 million new jobs created in August, with the unemployment rate expected to decline from 8.4% to 8.2%. Also, betting markets place slightly greater odds of a Biden victory post the TV debate.

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Hot Trade Of The Day

To see an expanded version, right-click and select ‘open link in new tab‘. In this section I pick a market or several ones that presented an opportunity to buy on weakness or sell on strength based on the higher timeframes outlook. My video analysis below will further elaborate on the logic behind the trade.   

Insights – Hot Trade Of The Day

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