Starting off with the macro perspective, we can cleary observe an imbalanced market that one time framing lower since several months. This month the market opened inside of a balance area that occured back in 2003. We'll see how the market will behave at the bracket high/low. Let's keep an eye on that levels.
Also with the weekly chart, we can see a very selling imbalanced market. The previous week ended the one time framing lower condition in some degree but bear in mind that the previous week actually closed below the week's high and formed a potential resistance area. The likelihood of testing the low again should be high.
Moving forward to the daily bars chart strengthens our short conclusions as we can cleary see a balanced market condition here. There is lot of air to the downside but the market have to break a stubborn support level inside of this balance area that holds since several days like in today's market as well.
The 240 minutes chart pointing out today's support at the previous balance area high to the tick:
Last but not least is to take a look into the US Dollar Index. Here we can see a balanced behavior in the daily perspective with a potential test of the bracket high conclusion.
If the market could break this mentioned support level inside of the daily balance area we should see some lower movements to the bracket low. As we know the currency market is sometimes a uncertain area with wild swings, so look out and calculate as well as manage your risk with the highest attention.
Next time we will take a look with TWAPs on this market again.
Anyway, stay happy!
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
