Temporary Halt at Resistance:
Major markets temporarily halted their runaway tear overnight. I say temporarily because for all the headlines that have been written today, all I see is price hitting a major resistance level and experiencing a rejection at first touch.
“CNY Trade Balance (210B v 339B expected)”
The major fundamental theme from yesterday was the miss in the Chinese trade balance number. It not so much renewed global growth concerns as they’ve always been lingering, but at least brought them back to the fore. Seasonality can be blamed here to some extent, so markets at least have an excuse if they want to take it.
As expected during times of uncertainty, the best performing currency overnight was the Japanese Yen. Turning to the charts, we’ve gone for EUR/JPY:
We went the EUR/JPY rather than USD/JPY just for the fact that the turn down in the pair coincides with a push up into resistance. This is definitely a nice, obvious level to use in your trading.
Speaking of levels to use in your trading…
Chart of the Day:
CHART UPDATE from yesterday’s Extraordinary European Expectations blog:
In yesterday’s daily market update blog, we talked about both the recently correlated oil and US stock charts both sitting at resistance.
Both markets completed perfect technical rejections off clear resistance levels. If you’re managing your risk around major levels correctly, you will always be okay.
— Vantage FX (@VantageFX) March 8, 2016
On the Calendar Wednesday:
AUD Westpac Consumer Sentiment
AUD Home Loans m/m
GBP Manufacturing Production m/m
CAD BOC Rate Statement
CAD Overnight Rate
USD Crude Oil Inventories
Do you see opportunity trading Forex? Take advantage on your own instant $50,000 Forex demo.
Dane Williams – @VantageFX
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