Weekend Price Action Trading Analysis 03.11.2016
Aloha traders, it was a crazy end to the price action trading week with the ECB surprising everyone by bringing on another round of QE. Oil continued it’s recent move up after the IEA said the oil market bottomed but Goldman Sachs saying the move up is premature. Which is it? I’d put my money on GS.
Let’s take a look at how this ECB stuff effected the market.
EUR/USD D1 Chart
The Euro went crazy on Thursday with a high/low range of nearly 400 pips! That’s quite a bit for this pair. As much movement as that was, we are still within a large range. I’m expecting a small pullback before the pair heads to the next level around 1.400/1.500.
GBP/USD D1 Chart
Cable continued it’s march higher with a nice pin bar on Thursday following the ECB decision and then a subsequent bull continuation candle right up to 1.4400. This is looking good for further gains this next week.
AUD/USD D1 Chart
Aussie continued it’s climb, barely registering a blink regarding the ECB. It plowed onward on Friday and I see no reason why it’s recovery cannot continue. Of course, if we see some terrible econ news out of China, Aussie’s main trading partner these days, then all bets are off.
USD/CAD D1 Chart
The Loonie is running strongly and contributing to the fall of the USD Index. Like most other major currencies, it’s gaining big time on the USD and shows no sign of abating. We’re going to have to see some strong talk from the US FED or some very good economic numbers. The USD did strengthen rather quickly and when that happens US trade takes a big hit with partner countries finding US goods too expensive.
In The News
Here are a few articles to give a read to this weekend: