Global Prime: Daily Market Digest

IvanGlobalPrime

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All Aboard The ‘Risk On’ Train


The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.


Let’s get started…
Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

The underlying risk appetite phase we’ve transitioned into flared up on Monday, this time assisted from the early hours in Asia by the euphoria to keep buying Chinese stocks, where the Shanghai Composite soared over 5% to a 2-year high, driving global risk sentiment higher as financial markets remain oblivious to COVID-19 resurgence.

While the momentum could not be expanded in the S&P 500 through the US, it’s worth noting that a major technical breakout through 3,160.00 was achieved. Besides, once again, new highs were made in the internet-heavy NASDAQ index, led by the two giants Amazon and Tesla. The improvement in risk kept the US Dollar, the Japanese Yen and the Swiss Franc under pressure throughout the day.

On the other side of the spectrum, the groovy mood out of China, benefited disproportionately the likes of the Australian Dollar and to a lesser extend the Kiwi. Interestingly, the Euro, which under-performed last week, saw a notable resurgence in buy-side flows since Asia. Gold had a splendid day as well, printing over 0.6% of gains.

The ASX (-0.7%) index in Australia behaved so out of sync with the rally seen in China, chatter has it that investors were taken aback by the news out of the Victoria state where COVID-19 saw a resurgence as well as the warning by the Australian Government that retaliatory actions by China on trade terms are to be expected in response to the opposition against the new HK security law.

Feeding through the ‘risk on’ vibes was the US non-manufacturing ISM, coming at 57.1 vs 50.2 consensus and 45.2 in May. The print reinforces the notion of a steadfast recovery from the ashes in the services sector of the US, which makes up most of the economy. New orders (61.6) and Business Activity (66.0) were the main contributors. On the flip side, the employment component stood at 43.1.

On the COVID-19 front, the market continues to be in a state of complete disregard about the worsening stats. The weekly average of new infections in the US keeps making new highs, while there has been a worrying rollback in the opening of certain regions in countries such as Spain, Italy, Germany, India or Australia to name a few. But again, it has had no bearings in the valuations of risky assets.

An article I wanted to highlight today is titled “Markets are just a liquidity meth lab“, as it really dives very elegantly into a point I’ve been making for months. The main take away from the article authored by Sven Henrich via NorthmanTrader.com, states that “markets remain beholden to the greatest monetary expansion in human kind making a mockery of the very basic concept of price discovery.” That’s the force that is eclipsing everything.

The fragility by the USD is very well portrayed by the continuous rise in Gold, at a time when stocks keep surging, which only adds to the negative outlook in the currency as the preferred short, alongside the Yen, in times of ‘risk on’. The breakout higher in pairs like the AUD/JPY, AUD/USD, NZD/USD represents a market voicing loud and clear risk assets ought to be bought in locations most suitable to one’s trading strategy.

To find out how I break down my technical views, my daily video analysis is available below, an opportunity to dissect the context of each market. It is also a great chance by the readership to get to tune in with my mechanical process to scan the charts in order to build a directional premise. The outlook for a market in the higher timeframes (4h + daily) is very powerful to come to terms about the crux of the matter in each time dimension. Is the market ranging or in a healthy trend?

If you found this fundamental summary helpful, just click here to share it!

Insights Into Market Flows
This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.


Recent Economic Indicators & Events Ahead



Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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
 

IvanGlobalPrime

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Messages
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Find my latest market thoughts


Technical Correction In Risk Sentiment

The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.

Let’s get started…

Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

The main take-away from Tuesday’s price action was an explosion in the price of Gold, hitting its highest level since 2011, alongside the eruption in buy-side flows in the Sterling amid speculation of a revival in Brexit talks, all in the context of a very weak Canadian Dollar and faltering US equities, unable to keep up the momentum but still bullish.

To be frank, with the type of run we’ve seen in risky assets over the last week, the setback in the likes of equities or the Aussie (led by the RBA + Melbourne lockdown) is nothing to be overly concern for now from a technical perspective. The moves in either category (Forex or Stocks) have not been particularly punchy, which plays into the view that this is just simply a technical correction in a conducive ‘risk on’ environment.

In stark contrast, a market that has decoupled from the modest movements in FX – except in GBP and CAD as the stand out outperformer and underperformer respectively – includes the price of Gold, making a new 9-year high and just a whisker away from touching the $1,800.00 round number as the next psychological target.

Further elaboration in the Sterling rally is needed. This time, it can be clearly attributable to a surprise informal dinner announced between the UK government’s chief Brexit negotiator, David Frost, who did host his EU counterpart Michel Barnier , “in a bid to revive flagging talks on a trade and security deal”, the Guardian notes.

Concerning the US, in an interview to the FT, Fed’s Bostic said high-frequency data showed a “levelling off” in economic activity both in terms of business openings and mobility, adding that “we’re watching this very closely.” Besides, Fed’s Mester reiterated the same point, noting that “over the past week or so, there’s been some levelling off, and I think it’s probably due to the increase in cases.”

With regards to COVID-19, the most notable news over the last 24h included a new 6-week lockdown in Melbourne (Australia) as the number of cases have suddenly risen, while in the US, we saw numbers in some hot spots petering out ever so slightly, with the number of people hospitalized and cases overall not as high as the 7-day averages.

As I shift gears into technicals, the price of Gold has finally resolved its congestion phase and $1,800.00 is the next 100% projection target off the 4-hour time scale. However, I am looking into $1,815.00 as an amplified target considering the daily bracketed area it broke. Long GBP against the weakest links appears to be an attractive proposition as well with structure/momentum agreement in different time scales.

Gold, the Pound and the Canadian Dollar, as I demonstrate in today’s video analysis, have turned out to be the markets one must be most attentive for trend trading opportunities. These are the instruments indicating concordance across higher timeframes (4 hour/daily). Find out how I am breaking it all down in the video below.

If you found this fundamental summary helpful, just click here to share it!

Insights Into Market Flows
This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.


Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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
 

IvanGlobalPrime

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Messages
25
Find my latest market thoughts

Resilience In Risk, Mores Losses In The USD

The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.


Let’s get started…
Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

What stood out through a Wednesday session vacant of market-moving fundamental news was the continuous fragility of the US Dollar, by far the worst performer, while on the other side of the spectrum, Gold added over 0.8% and convincingly broke $1,800.00.

In equities, the US tech rally shows no signs of abating with the Nasdaq rallying +1.4% courtesy of the FAANG complex. The S&P 500, as it’s been the case through the post COVID-19 era, lagged behind the Nasdaq but also printed gains to the tune of +0.8%.

Amid the sustainability of solid bets in risky assets, the Canadian Dollar was the stand out out performer in the currency arena, while a bunch of other currencies (AUD, EUR, GBP, CHF, NZD) delivered similar daily percentage changes at the expense of big losses in the Japanese Yen but most notoriously, against a battered US Dollar.

It is important to convey the message that from what’s transpired in the last 24h, the resilience in risk sentiment is very much in line with the recently promoted premise of a re-alignment between the big picture ‘risk on’ and short-term dynamics. It also vindicates the presumption that the recent setback in risk on Tuesday was a mere bleep and corrective in nature as part of the grand ‘risk on’ trend.

Technically, I like what I read across key instruments to solidify my positive stance for an expansion of the risk appetite. Equities are on a firm footing with the latest setback in the S&P 500 very corrective in nature vs the recent impulsivity of the buy flows. Not to mention that the Nasdaq remains on absolute fire making new all-time highs.

On top of that, the US Dollar is showing cracks across the board, while Yen crosses catch a renewed wave of buy-side pressure. The gold market keeps portraying like no other the fragility in the USD with the latest bullish leg making it to the 100% projection target of $1,816.00, a major profit target I mentioned in yesterday’s analysis (from 2′ 30”).

If you are interested to find out the markets best positioned to keep milking the vulnerability in certain currencies the likes of the US Dollar or the Japanese Yen, the video I put together below is a must-watch. In it, I deconstruct the analysis of structures, momentum, volatility, support/resistances and projection targets. You get served in a matter of 15-20m a great deal of valuable info, a real treat to your education.

As a final note. Make sure you do not let the disconnect between fundametals in real economies and valuations derail you from trading based on your technical edge. I know it’s must be hard for the untrained mind to reconcile buying risky assets at a time when the number of COVID-19 cases is spiking again and Melbourne goes on a 2nd 6 week lockdown, but this is what you get when Central Banks (Fed most notably) go out of their way to manipulate markets via insane liquidity injections.

If you found this fundamental summary helpful, just click here to share it!

Insights Into Market Flows
This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.


Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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
 

IvanGlobalPrime

Private
Messages
25
Find my latest market thoughts

Turnaround In Risk But GBP Still Shining

We’ve gone through a setback in risk sentiment as depicted by the out performance of the Yen and the US Dollar across the board, closely followed by the mighty Pound (judging by this week’s results), while the Aussie, the Euro and the Canadian Dollar were the main laggards as a wave of selling hit the S&P 500 early doors in the US.

Let’s get started…


Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

We’ve gone through a setback in risk sentiment as depicted by the out performance of the Yen and the US Dollar across the board, closely followed by the mighty Pound (judging by this week’s results), while the Aussie, the Euro and the Canadian Dollar were the main laggards as a wave of selling hit the S&P 500 early doors in the US.

By going through the news overnight, some appear to attribute the declines to renewed concerns over the coronavirus in the US, where the CDC reported a 29% increase in the number of cases as the death toll continues to rise steadily. But we know by now how decoupled the COVID-19 saga has been to call the tone in risk sentiment.

What I noticed is that the buying of Yens and US Dollars happened to be timed to perfection to a piece of news where the Supreme Court ruled that a NY Grand Jury can have Trump’s tax records, after Manhattan prosecutor Cy Vance subpoenaed eight years of returns in connection with an investigation into hush money payments.

Trump tweeted: “This is all a political prosecution. I won the Mueller Witch Hunt, and others, and now I have to keep fighting in a politically corrupt New York. Not fair to this Presidency or Administration! Courts in the past have given “broad deference”. NOT ME!” Deutsche Bank says it will comply with the Supreme Court’s decision and will provide Trump’s records to NY prosecutors, according to Bloomberg. Axios carries the story.

Shifting into the technicals, the setback in risk has led to the majority of instruments that used to show constructive trends in either the 4h chart, the daily chart or both combined (ideal scenario) being compromised now. There are still a few exceptions where healthy trends are still present, mainly in GBP pairs given the impressive weekly gains printed.

It’s now important to be pragmatic and selective, arming yourself with enough patience to know what markets are best to sit out awaiting for further definition of the directional bias and what instrument still argue for tradable opportunities to potentially be found this Friday. Let’s find out via the video analysis that I put together for you all below.

If you found this fundamental summary helpful, just click here to share it!

Insights Into Market Flows
This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.


Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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
 

IvanGlobalPrime

Private
Messages
25
Find my latest market thoughts

GBP & Stocks Outperform, USD Still Weak

The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.


Let’s get started…


Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

We enter a new week of trading with US equities charging higher following a late rally on Friday, Gold trying to hold above the $1,800.00 mark, the Pound still an out performer in the currency space, while the USD and Yen keep heading in opposite directions.

There have been no improvements in the COVID-19 news flow over the weekend with new record infections out of Florida. However, news last Friday that Gilead’s Remdesivir treatment reduced mortality rates significantly aided the recovery in sentiment.

When it comes to forging one’s views by first defining the type of risk environment we are in, we are back to getting ambiguous and unclear reads as stocks up and the US Dollar down tell us one thing (risk on), yet the weekly performance by the Yen (2nd largest gains) or the Canadian Dollar (main loser) communicates the opposite.

The hit taken by the Canadian Dollar comes even after a positive jobs read last Friday, which the market brushed under the carpet. Canadian employment in January saw a rise of 952.9k vs 700k expected even if the unemployment rate met expectations of 12.3%. Technicals in the CAD were looking grim ahead of the release nonetheless.

Before I jump into the technicals, be reminded that unlike last week, where the economic news flow was limited, this week is a whole different ball game. We have US earnings, China Q2 growth figures and June activity, the much-awaited EU Summit, Australia’s employment report and NZ Q2 CPI in the docket.

Lastly, the market continus to turn a deaf ear and be oblivious to the fact that U.S. President Trump is in no mood to resume trade talks with China for a “Phase 2” trade as the relationship between the two contries, even to the public eye, have been severely compromised due to COVID-19 and the cover up of the virus by China.

When asked by reporters about the prospects of a ‘Phase 2’ deal, Trump said “I don’t think about it now,” adding that “many other things are in my mind now”. Trump went on to say “the relationship with China has been severely damaged. They could have stopped the plague, they could have stopped it. They didn’t stop it…”

Let’s now go through a quick summary of what really matters for the readership. That is, what markets are still in a trending phase, hence we want to be monitoring most closely and be ready to jump on the bandwagon of opportunities that may be about to emerge?

The markets that capture my interest and fit the bill where the 4h and the daily see an alignment of structures and mometum include. The S&P 500 index, GBP/USD, EUR/CAD, GBP/AUD, GBP/CAD. There are a bunch of other markets where the 4h time scale is in agreement but contradictions exist when crosschecked vs the daily.

As usual, in the video below is where I lay out all my thoughts for the day ahead, always taking aim to identify the markets with the conditions most ripe to engage in trend trading. Calling ranges when we should is also critically important to stay away from noisier prospects. I too look to incorporate intermarket to find divergences.

If you found this fundamental summary helpful, just click here to share it!

Insights Into Market Flows
This analysis is conducted on a multi timeframe dimension. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter a position, hence the video is mainly intended as a way to educate traders in upping their analytical skills.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.


Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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
 

IvanGlobalPrime

Private
Messages
25
Find my latest market thoughts

Euro Buying Emerges, Risk Reversal Tuesday

The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.

Let’s get started…
Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

The market swiftly transitioned from ‘risk on’ vibes dominating proceedings for most of Monday to an abrupt change of heart, leading to the erosion of gains in the commodity-linked currencies and US equity indices in favor of the Japanese Yen and the US Dollar.

It all started to snowball when California announced that they would be re-closing bars, restaurants, and other activities, including church attendance. To make matters worse, the Los Angeles Unified School District said the scholar year would begin online.

But the big winner for the day was indisputably the Euro, miles away from a revived US Dollar, the second best performer. The CAD, AUD, CHF saw similar performances in the last 24h, while on the bottom of the board, we find a battered GBP, unable to keep up the recent gains. The NZD fell precipitately from its highs and the JPY, while it recouped a portion of its losses, still ended printing broad losses.

Trending Markets On My Radar
In this section I short-list the markets where a case can be made to engage on a directional trend off higher timeframes, including the 4h and daily time scales. These are the markets included in my video analysis in the insights section 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.



If you found this fundamental summary helpful, just click here to share it!

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.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.



Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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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Euro Longs Thrive, Equities Find Buyers

The Daily Edge is authored by Ivan Delgado, 10y Forex Trader veteran & Market Insights Commentator at Global Prime. Feel free to follow Ivan on Twitter & Youtube weekly show. You can also subscribe to the mailing list to receive Ivan’s Daily wrap. The purpose of this content is to provide an assessment of the conditions, taking an in-depth look of market dynamics – fundamentals and technicals – determine daily biases and assist one’s trading decisions.


Let’s get started…

Scan Of The Markets


The indices show the performance of a particular currency vs G8 FX. A video on how to interpret these indices can be found in the Global Prime’s Research section.

The Euro keeps charging higher as it retains its dominance in anticipation that EU leaders will manage to make progress with regards to the COVID-19 economic rescue package. The market consensus appears to be of a final agreement in Aug or Sept.

In terms of risk sentiment, we had a late rally in US equities amid mixed earning reports and positive vaccine news flow as Moderna announced it is on track to start phase 3 trials after evidence of antibodies produced in its initial testing for COVID19 drug.

Overall, it remains a market largely indecisive given the two-way gyrations in stocks and FX as of late. The renewed jubilation in equities, which continue to be relentlessly bid on weakness has contributed to keep an offered tone in ‘risk-off’ associated FX.

Going forward, there are a number of high-impact news to navigate through, including the ECB meeting on Thursday, the EU council meeting that kicks off on Friday into the weekend, alongside the BoC meeting today, the first one under Governor Macklem.

As the below screenshot portrays, there are certainly some markets starting to shape up discernible trends off the higher timeframes. As traders, while respecting the volatile fundamental news to come, what concern us most and serve us best is the razor-like focus one must have in identifying these directional flows, which for today include…

If you found this fundamental summary helpful, just click here to share it!

Trending Markets On My Radar
In this section I short-list the markets where a case can be made to engage on a directional trend off higher timeframes, including the 4h and daily time scales. These are the markets included in my video analysis in the insights section 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.



As explained through yesterday’s video analysis (watch from minute 15) we were given an opportunity to engage in Silver longs at a point of technical discount in line with the underlying bullish bias. The market is now hopefully headed to the 3:1 risk reward target.

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.

If you found the content valuable, give us a share by just clicking here! Besides, if you have a suggestion on extra instruments for me to cover, reach out to me via Twitter.



Recent Economic Indicators & Events Ahead


Source: Forexfactory

If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!

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.

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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