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.
Here is a quick market update for EUR/USD. As always, we will looking for the path of least resistance with our top down analysis process. It is the most significant part in our daily trading to read and understand the market story with various tools on several timeframes. With that said, let's start out with the monthly bars chart.
With looking on the monthly chart, we can still see the major one time framing lower market that occurs since eight months. Also the previous month's low got taken out immediately to moving lower and lower. Currently the market testing a potential support area. The market participants awaiting Thursday's ECB decision about the QE program, so it will be very interesting to observe the market behavior here.
Moving forward to the weekly chart, we can see the market rejected several times the balance area low to finally continue its one time framing lower behavior here as well. Currently we have a rotational inside week as the market did not took out the previous week's high or low. We can also identify that the previous week closed above the marked support level.
As we are analyze the weekly bars chart we should also consider a look on the weekly TWAP. The market opened below the previous weeky value close area. The developing value slope is somewhat flat and we can cleary see the rotational behavior. However, we are trading below the weekly developing value and there is enough room to the downside.
With looking at the daily bars chart, we can observe a one time framing lower behavior and two inside days. As mentioned before the market participants awaiting Thursday's decision, so we should expect one more rotational inside day before the market get really wild.
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Be careful and stay open minded as well as happy!
