Week of the Currencies Commercial Boom. What To Expect?

Week of the Currencies Commercial Boom. What To Expect?

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Why wait for the analysis here when now you can learn how to do them on your own. Here are a few situations explained inside PieceofTrading's educational platform.

CRUDE OIL

 

 Crude Oil analysis

Correction of five consecutive down days ending with the largest one, stopping volume and a seasonal bottom is what can be expected to create upside opportunity for Crude Oil. If the market can make a higher short-term low that would be the place to search for entries.

 

CURRENCIES

Take a look at the next charts. First is the Canadian Dollar.

 

 Canadian Dollar analysis

 

Next is the U.S. Dollar Index

 US Dollar Index analysis

 And the Japanese Yen

 Japanese Yen analysis

 

Do you notice something very strange in those three charts? Like Crude Oil, they all show that currencies are either around tops or bottoms, seasonally speaking but there is another not very common similarity. I am talking about Commercial's activity. Check the blue line in the pane below the chart. See the big jump shown by the latest COT data? That is well described in piece #M20 and with 70% suggests that a move should be expected in the direction of this Commercial push.

How to approach this situation? Well, generally we should wait for price action signals in that direction but there is no sense in taking positions in all of them because buying currencies and selling Dollar Index is the same trade. Since Crude Oil is also expected to go up and the only pro-trend trade is in the Canadian Dollar this is where my preference goes.

 

 

Now, let's find your missing piece!

Vassil Banov,
Founder of Piece of Trading


Trades mentioned here are either taken or will be taken by the author if the right conditions appear. They are NOT recommendations nor any of this constitute investment advice. Please read the Risk Disclaimer
Seasonal indicators courtesy of Larry Williams, ireallytrade.com. Charts made with TradeStation®. tradestation.com

TAGS: Dollar Index, Euro, EURUSD, Canadian Dollar, Japanese Yen, CAD, Price Action Trading, JPY, DX, USD, Crude Oil

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