Weekend Price Action Trading Analysis – 03.11.2016

By March 11, 2016Analysis
image of EUR/USD forex chart

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.

image of EUR/USD forex chart

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.

image of gbp/usd forex trading chart

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:

Dollar falls for second week as central banks spur risk appetite – Reuters

U.S. dollar longs slip; yen longs at 8-year high-CFTC – Reuters

Markets Try To Make Sense of ECB’s Effectiveness – Bloomberg

Why Euro-Area Inflation Will Be Low for Years, According to Draghi – Bloomberg

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