Friday Night, Game On!:
With all major markets sitting at key levels, it’s game day. Oil, US stocks, The Yen etc etc. Every chart I flick through on my Vantage FX MT4 platform seems to be sitting at some sort of major make or break, higher time-frame level.
As we spoke about yesterday on the @VantageFX Twitter account, USD/JPY approached and then broke through major weekly trend line support.
— Vantage FX (@VantageFX) February 11, 2016
There are obviously a few different ways to draw this trend line which makes it a little iffy, but the fact that the lower time frame price action respected the level on both sides of it, tells us that either way it carries some significance.
Getting back to the present and we can see that price has gone through weekly support, but is clinging on for dear life.
Zoom into the hourly and we see it’s showing a break-out and re-test… but this isn’t a break-out and re-test. It’s the Asian session, there is no momentum following the break-out and I’m expecting some consolidation until the US session tonight. Don’t get sucked in!
So… Is this the day that all hell breaks loose in Indices markets? We’ve talked about expecting the S&P 500 to lead other markets and we’re now at a major tipping point.
Another new low on stocks last night, but another fake-out with the daily candle closing with a huge wick once again bouncing out of support.
As for the trend line when you zoom into the hourly chart, once again I’m taking it with a grain of salt. Remember that it’s a weekly trend line starting as far back as 2009, so once you zoom in through the different lower time frames, the candles are never going to line up exactly. I’ve included it because it’s there, and that’s all.
While the trend line isn’t really tradable, there is no denying test after test of the horizontal support zone that is weakening each time.
Friday night and it’s game on.
On the Calendar Friday:
AUD RBA Gov Stevens Speaks
CNY Bank Holiday
EUR German Prelim GDP q/q
USD Core Retail Sales m/m
USD Retail Sales m/m
USD Prelim UoM Consumer Sentiment
Dane Williams – @VantageFX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our ECN Forex prices or solicitation to trade. All opinions, news, research or other information is provided as general news and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the Forex blog will be achieved, and past performance is not indicative of future performance.