Scan Of The Markets
FX, metals and equities keep all trending for the most part. Crosschecking the 4h and daily time scales to find concordance in the directional biases remains a thing of beauty with over 20+ markets qualifying for intraday swing trading opportunities.
Looking at the performance of each currency index, the commodity-linked currencies and Europe remain up there while the likes of the risk-off currencies stay pressured. In particular, what’s most notable is the ongoing weakness in the US Dollar, falling for 4 days in a row. The mind-boggling rise in metals also grabbed headlines.
Fundamentally, the big driver/s igniting the ongoing momentum in financial markets include the EU rescue fund approval, further fiscal support in Australia and expectations of more fiscal stimulus in the US. It goes without saying that such punchy movements continue to ignore both the pick up in COVID-19 cases globally and US-China tensions.
In the latter, we saw a mini-collapse in risk early in Europe following a diplomatic bombshell as the US gave China 3 days to close its Houston Consulate. The US State Department made such a move “to protect American intellectual property and Americans’ private information.” US Secretary of State Michael Pompeo added “We are setting out clear expectations for how China is going to behave and when they don’t we’re going to take actions that protect the American people.”
Eagle View – Momentum & Structures
Trending Markets On My Radar
In this section, from the table above, and after scanning through the charts, I short-list the markets that meet the criteria or may soon do to engage on a directional trend off higher timeframes through a 15m timeframe entry. To get a deeper dive into the markets included in this section, watch my daily video analysis below.
Hot Trade Of The Day
In this section, I pick a market or several ones that presented an opportunity to buy on weakness or sell on strength based on the higher timeframes outlook. My video analysis below will further elaborate on the logic behind the trade.
Insights Into Market Flows
In this video analysis, I dissect the information above. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter and manage a position, hence the video is intended as educational in nature and not financial advice.
Video Length: 00:12:50
Recent Economic Indicators & Events Ahead
(Click on image to enlarge)
Source: Forexfactory
Important Footnotes
MARKET STRUCTURES
Markets evolve in cycles followed by a period of distribution and/or accumulation. To understand the principles applied in the assessment of market structures, refer to the tutorial How To Read Market Structures In Forex. To simplify it all for readers, a transition to analyze structures via Fractal breakouts has been included in my analysis.
SMART MONEY TRACKER
In order to assess the market momentum of a particular asset, I’ve promoted for years the idea of using what I call the smart money tracker. The settings and the indicator can be obtained via our Discord room, where traders from all walks of life interact frequently. In this video I lay out the elements I look into to call trend directions.
SUPPORT & RESISTANCE
Unlike levels of dynamic support or resistance or more subjective measurements such as Fibonacci retracements, pivot points, trendlines, or other forms of reactive areas, horizontal areas of support and resistance are universal concepts used by the majority of market participants. It, therefore, makes the areas the most widely followed. The Ultimate Guide To Identify Areas Of High Interest.
FUNDAMENTALS
It’s important to highlight that the daily market outlook provided in this report is subject to the impact of the fundamental news. Any unexpected news may cause the price to behave erratically in the short term. Monitor the event risks via Forexfactory.com & refer to Fundamentals vs Technicals In Forex.
PROJECTION TARGETS
The usefulness of the 100% projection resides in the symmetry and harmonic relationships of market cycles. By drawing a 100% projection, you can anticipate the area in the chart where some type of pause and potential reversals in price is likely to occur, due to 1. The side in control of the cycle takes profits 2. Counter-trend positions are added by contrarian players 3. These are price points where limit orders are set by market-makers. You can find out more by reading the tutorial on The Magical 100% Fibonacci Projection.
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