Forex Activity for this week
I may refrain myself trading forex today or for the rest of the week. I may trade on a limited time window depending on my available time. i don’t feel comfortable looking at the charts for most majors. i got mixed signals, suggesting this week’s forex activity will be demoninated by emotional spikes and extreme volatility. I love trading the volatility but if i the charts doesnt give me a clue to its direction, i rather play it safe.
below is the aud/nz daily chart. this is indicator i use to determine the overall psychological perspective of the market and the behavior of the dollar. Last jan 9 (e.t. time) it turned bearish. usually this is a lead indicator (few days to a week) that something extreme may happen.
Here’s another mixed signal to the overall picture. EUR/USD daily made a bullish divergence few days back, that is price within the bollinger band yet rsi is below 50. It made a nice rebound after which. On jan 9 though it made another bullish divergence yet failed to mimic its previous signal. As of this writing, the pair is in the edge of a trend reversal.
This one turned into a full blown parabolic burst with target of 0.82. However, the band is a little bit wide and the rsi is in a support level, it may bounce back inside the band yet the trend is now negative for the euro against the pound. A long euro/gbp may be considered though if the rsi held back from its support level, comparable to what happened last oct.31.
Here’s the chart of GBP/USD.
Promising but fragile.