Global Prime: Daily Market Digest

Find my latest market thoughts

Oceanic Currencies Keep Flying

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.

Let’s get started…

Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

The month of August can now be stared from the rear mirror as we welcome what’s typically a volatile period ahead. In terms of trends, the Forex market continues to offer plenty of opportunities to engage in intraday swing trading activity as illustrated by today’s watchlist where over 20 instruments are still meeting the criteria to be tradable.

When it comes to the performance ranks, the Japanese Yen, on the back of PM Abe’s resignation scare, has proven to still be the weakest link as selling returned in style to plummet the currency in fresh trend lows against the strongest currencies out there (European, Oceanic). Amid the lack of news, month-end flows alongside the lingering sentiment off Jackson Hole outcome were the main factors at play.

To sum up, most of the existing trends come on the back of the strength seen in the Oceanic currencies vs risk-off associated fiats. That’s opened up the doors to select a fair share of tradable pairs. Besides, the recent strength in the Pound and the Euro, even if not comparable to the likes of the AUD, NZD, has also allowed to amplify the Watchlist in what remains a prime time to trend trade.

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 that meet the criteria, or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.

This selection is done after analyzing markets through key metrics (Fractals and SMT) in different timeframes (4h and daily). A video on the power of the SMT can be found here “How To Trade Forex Trends Like A Pro“. The video “Fractals + SMT: The Multi-timeframe Functionality” is also a Must-Watch to fully grasp this style of analysis.



Hot Trade Of The Day
To see an expanded version, right-click and select ‘open link in new tab‘. 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 Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts

Forex Trends Abound, Be Locked & Loaded

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.

Let’s get started…

Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

Equities up, risk-on currencies generally up, the Swissy down, sounds familiar? Now, this time, the subtlety not to overlook is the better performance of the USD during the US session coincidentally at a time when the EUR/USD finally hit the 1.20 round number.

The latest currency flows still leave us phenomenal conditions to engage in trend trading opportunities in a large number of instruments where both the 4h and the daily directional premise is in concordance. The Aussie, Kiwi and Pound make up most of the buy-side campaigns currently active alongside an equity space still ballooning.

In the fundamentals front, we learnt that the ISM came at a big beat on expectations even if the employment sub index remains in contraction. However, as the main driver still pushing risk higher is the lingering sentiment on the Fed’s new inflation approach (average inflation) which suggests ultra-loose monetary policy for longer.

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 that meet the criteria, or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.

This selection is done after analyzing markets through key metrics (Fractals and SMT) in different timeframes (4h and daily). A video on the power of the SMT can be found here “How To Trade Forex Trends Like A Pro“. The video “Fractals + SMT: The Multi-timeframe Functionality” is also a Must-Watch to fully grasp this style of analysis.




Hot Trade Of The Day
To see an expanded version, right-click and select ‘open link in new tab‘. 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 Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts

Stocks On Fire Yet USD Bounce Continues

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.


Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

Despite the follow-through demand in US stocks, the USD found further short-covering to track closely the two best performing currencies on Wednesday, which include the Kiwi and Loonie. On the flip side, the Aussie and the Euro were the worst performers.

The strength in the USD, combined with the weakness in the mighty AUD or GBP, leaves us with a watchlist of trending markets shrinking yet still at healthy levels overall, mainly as a result of the recent fortitude the Pound, the Kiwi and stocks have shown.

In the fundamental domain, the US ADP Employment report came surprisingly weak ahead of Friday’s NFP. The Fed’s Beige Book noted a pick-up in activity in most regions. Meanwhile, in politics, House Speaker Nancy Pelosi reported “serious differences” still remain in place with regards to a new fiscal support package.

It’s also worth noting that the disparity in performance between the AUD and the NZD in the last 24h originates from fundamental news. On one hand, the Australian Q2 GDP saw a fall by 7% Q/Q, while the NZD surge came courtesy of the remarks made by RBNZ Governor Adrian Orr, who said that the exchange rate was behaving as one would expect and was not a concern to consider to adjust policies.

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 that meet the criteria, or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.

This selection is done after analyzing markets through key metrics (Fractals and SMT) in different timeframes (4h and daily). A video on the power of the SMT can be found here “How To Trade Forex Trends Like A Pro“. The video “Fractals + SMT: The Multi-timeframe Functionality” is also a Must-Watch to fully grasp this style of analysis.




Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts


Risk-Off Hits The Market, Reset In Trends

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.



Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket. A video on how to interpret these indices can be found in the Global Prime’s Research section.

The saying ‘up the stairs and down the elevator’ certainly applies to the action seen in the US stock market in the last session as seemingly out of nowhere what looked like a slow grind lower evolved into a monster move that led to a slump to the tune of 5% in the Nasdaq, while the S&P 500 and the Dow Jones followed suite with similar declines.

It goes without saying that amid such panic selling in equities, the commodity-linked currencies (AUD, NZD, CAD) have suffered the most, alongside the perky Pound, unable to sustain its recently successful run. Such radical shift to selling in equities has resulted in risk-off associated currencies (USD, JPY, CHF) to be bought up. The Euro, interestingly, has also held up really well in this environment.

This move still represents a rather tiny correction relative to the multi-month rise seen in the Nasdaq or fall in the USD for this matter. The VIX index, nonetheless, had been warning us for a while now of a divergence of epic proportions against US equity indices. This chart, shared by our Discord user @tmpascoe speaks volumes.



In the US fiscal front, Bloomberg reports that Treasury secretary Mnuchin and House speaker Pelosi have agreed, on a 36-minute call on Tuesday, “that they want to avoid a government shutdown and would seek a “clean” stopgap funding plan free of extraneous measures”, according to a source briefed on the call to CNN.

Looking at the calendar for Friday, it’s the first Friday of the month, which means is time for the US NFP release (jobs report). At the same time, Canada publishes labour figures for August. Earlier, relevant data not to be oblivious to include Australia’s Retails Sales figures for July and German factory orders (July) as potential currency movers.

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 that meet the criteria, or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.

This selection is done after analyzing markets through key metrics (Fractals and SMT) in different timeframes (4h and daily). A video on the power of the SMT can be found here “How To Trade Forex Trends Like A Pro“. The video “Fractals + SMT: The Multi-timeframe Functionality” is also a Must-Watch to fully grasp this style of analysis.


The fact that we’ve seen such an upset in risk conditions in the last 24h translates in a major reset of trends in currencies, metals and equities. Proof of that is that I was unable to find even one single instrument out of the 30 monitored where the daily and the 4h appear to be moving in the same direction based on structures and momentum.

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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts


Corrections In The Long-Term Trends Prevail

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.

Let’s get started…
Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

On the back of a surprising drop in the US jobless rate, which is what stood out from an otherwise in-line US jobs report, equities and forex went for a wild ride with some pronounced V-shaped type movements that make the technicals reads challenging.

The net effect was a second red day for equities in the US although judging by the performance in FX, you wouldn’t think the sentiment in equities took another hit as the CAD ended topping the climbers’ board while the Swissy underperformed.

Technically, these markets remain way more erratic than a few weeks back after a noticeable shift in sentiment that has resulted in short-term flows heading in the opposite direction of the longer-term trends. This makes finding congruence between 4h and daily charts hard, hence going one step lower in time scales (1h and 4h) makes sense. Watch today’s video for an example of what I mean.

On Friday, we also saw Fed Chair Powell re-emphasize the slowdown in the US recovery, speaking to National Public Radio, even if he welcomed the jobs release as a positive input. “Today’s jobs report was a good one,” he said, but then cautioned that “to get us back to full employment, we’re going to have to get the disease under control.”

Powell added: “The recovery is continuing; we do think it will get harder from here,”. Powell reiterated that rates would remain low for a long time as in years to come, adding that “it’s likely we will need to take more stimulus measures over time.” .

Be reminded that is a long weekend in the US and Canada as they celebrate Labour Day, so if you aim for some action in FX, the London session is your best bet to engage in speculative trades. This week, the ECB and BOC meeting are taking center-stage, alongside Australian jobs as well as jobless Claims and CPI in the US.

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

Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts

Calm Before The Storm (ECB, BOC Await)

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.


Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

As one could have anticipated, it was a quiet affair in financial markets on Monday due to the long weekend in the US and Canada. The news flow was probably as light as it gets and that was reflected in the tepid price action that formed. As a result, we are still faced with a low number of trending markets in the higher timeframes (watch video).

The exception and main mover was the GBP, sold from the get go in London as fears of a no deal Brexit returned. UK PM threatened to walk away from UK-EU trade talks if no agreement is reached before October 15. UK PM Johnson said: “If we can’t agree by then, I do not see that there will be a free trade agreement between us, and we should accept that and move on”. The game of brinkmanship continues.

Meanwhile, the Swissy keeps extending its losses from last Friday just as the Canadian Dollar reinforces its short-term fortitude ahead of Wednesday’s BOC. In the most heavily traded currencies (EUR & USD), both are treading water ahead of the high-stakes risk event by the former as the ECB meets on Thursday. Watch the Aussie as well, with decent demand found since the US NFP-led bottom.

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

Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts


Risk-Off Exacerbated, Trends Abound

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.

Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

The current dynamics in financial markets are characterized by risk aversion amid the ongoing and acute imbalance of sell-side flows in equities, commodities and currencies-linked to risk.

It’s been a real struggle to pinpoint any specific driver behind the moves we are seeing, which is why following price action, market structures/order flow and momentum is the key in this game.

As the chart above shows, the Yen, US Dollar and the Swissy are thriving this week while the Sterling and the commodity-associated currencies (AUD, NZD, CAD) are going through a rough patch.

By crosschecking time scales such as the daily and the 4h, or even better for shorter-term involvement by combining the 1h and 4h, we can observe plenty of trending instruments at the moment.

In the tables below, I represent via the structures and momentum the markets that portray the most imbalances in the combination of time horizons described above. The video that follows will break it down.



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

Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts


Strong Shift In Risk Sentiment, ECB Up Next

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.


Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

There has been a significant rebound in risk sentiment with equities once again surging. The tech heavy Nasdaq index rose by 2.7%, the S&P 500 did so over 2% and this gloomier vibes were also seen in European stocks ahead of today’s ECB policy meeting.

As a result of the improved sentiment, the currencies that did well in the recent stampede of selling pressure (USD, JPY) went downhill on Wednesday. The AUD, CHF, CAD topped the leaders’ board while the GBP, amid renewed Brexit fears, is still going through a rough patch.

A headline that re-ignited the kicking of the ‘risk-on’ into a higher gear came courtesy of Bloomberg early in the US session, reporting that “some governing council members had become more confident in their forecasts for the region’s economic recovery.”

This headline also assisted the Euro to regain fortitude from what had been a poor performance until then. Besides, it was suggested that such council members’ opinions will lead to projections for GDP and inflation to be revised ever so slightly, hence the need for an immediate increase in QE may not be in store for this meeting.

As a reminder, on the lead up to today’s ECB meeting, the expectations had been for the ECB to retain a firmly dovish stance. The comments leaked by Bloomberg, therefore, reduce the chances of a dovish surprise in today’s policy meeting. An increase in stimulus at the December meeting had been an outcome highly anticipated.

The CAD was a clear winner too not just as a result of ‘risk-on’ but on the back of the BoC meeting, which stood pat on rates and refrained from its intentions to take on further QE measures while sounding more constructive about the recovery by noting “the bounce-back in activity in the third quarter looks to be faster than anticipated in July”.

When it comes to the next course of action by the BOC, the prospect for further easing look stronger than for another rate cut after noting. “This QE program will continue until the recovery is well underway and will be calibrated to provide the monetary policy stimulus needed to support the recovery and achieve the inflation objective”.

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

Hot Trade Of The Day
To see an expanded version, right-click and select ‘open link in new tab‘. 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.

For traders actively monitoring the London session, several opportunities in risk-linked instruments popped up. In the illustration below, a 15m long trade in CAD/JPY based on what I refer to as a TT pattern (Trapped Traders) was made available. What’s important to highlight here is the pivotal point in the daily chart this pattern occurred at, making it a solid long trade off a key decision point.



Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts


High Vol FX Moves, EUR & GBP Main Movers

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.



Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

The big story of the day, aside from the ECB policy meeting, which ignited punchy movements in the Euro, was the continuous hammering of the British Pound. The US equity space, after a promising start, ended up succumbing once again, which in turn assisted the likes of the Swissy, Yen and USD to be bought up.

With regards to the Pound, the selling can be single-handedly attributed to real fears kicking in in the Brexit front as the EU issued an ultimatum to the UK over its Internal Market Bill intentions. The EU didn’t like a bit the move by the UK to rewrite parts of the withdrawal agreement it signed in January, and either the UK withdraws the bill by the end of the month or it will face legal action.

The European Commission said that the UK had “seriously damaged trust” and trade talks were at risk. What’s most concerning is the fact that Cabinet minister Michael Gove said the UK is not willing to meet such expectations by saying that he had made it “perfectly clear” that the UK government “could not, and would not” change the bill.

As per the ECB, the policy settings was unchanged, leaving the deposit rate at -0.5% and equal levels in QE programmes. The ECB upgraded ever so slightly its growth projections as well as inflation forecast. No surprises there. Commenting on the EUR appreciation, Lagarde said “in the current environment of elevated uncertainty, the Governing Council will carefully assess incoming information, including developments in the exchange rate, with regard to its implications for the medium-term inflation outlook.”

Once Lagarde took the stage as part of the Q&A, the main take-away is that the ECB is unlikely over-react to a strong Euro, noting they are “carefully assessing” but without any strong wording that would suggest the levels it trades at are the main focal point to calibrate monetary policies in the short-run. The Euro did well for the most part of the ECB event and it finished the day close to being the top performer.

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

Insights Into Market Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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
 
Find my latest market thoughts

GBP Weakness & FOMC Main Focus

Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.


Let’s get started…


Scan Of The Markets


To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.

We kick off the week with several narratives that have been left and center. What initially jumps out in analyzing any forex pair, without a doubt, is the sharp losses experienced by the British Pound in the last week as the markets prices in aggressively the scenario of a no deal Brexit. Negotiations, while not ruined, have taken a negative turn.

Secondly, on the other side of the spectrum, we find a Euro rejuvenated on the back of an ECB not yet ready to be on a renewed committal stance and lay the ground to beef up its QE program. Besides, the rather lax language used towards the Euro exchange rate, despite its strong appreciation, has been another major driver.

Another important dynamic not to be oblivious to as the new week unfolds is the suppressed risk sentiment in stocks after the US market once again succumbed to the growing selling pressure we’ve seen resurfacing since the beginning of September. The tech heavy Nasdaq fell by 0.6% while the S&P 500 was barely changed for the day.

Note, the move in stocks and gains in risk-off currencies since early September appears to be linked, based on the bank research notes I am reading, to a shift in focus towards the US election as the market starts hedging the risk of a Trump presidency defeat or at the very least convoluted and dramatic scenes amid the controversy over postal voting and the potential for results being contested.

Will this risk-off mood last?What’s going to set the tone for the rest of the month to answer this question is this Wednesday’s FOMC. That’s where all the attention will undoubtedly be placed. The key question the market aims to gain clarity on includes. Will the Fed renew its commitment with a new set of stimulatory tools that allows for their actions to be in line with the new new monetary policy regime they set out last month called ‘Average Inflation Targeting’ (AIT)?

The Fed wants the economy to run hot without the need to immediately hike rates. How are they going to achieve that? We’ll hopefully get new snippets of information this week. The Fed must follow up on its new tactics and show they are walking their talk to gain back credibility in the eye of the market in an area (inflation) that they’ve done very poorly since the mid 90s.

Further QE, while not the one-and-all answer, is what seems to have worked best to depreciate the USD, which in turn results in an inflationary environment. Therefore, if the Fed hints at more expansionary policies to keep expanding its balance sheet, there are real risk of a lower USD. However, if they fail to properly communicate their plan of action, the strength seen in the USD may continue. Either way, the potential vol that may unravel could quite quite high.

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

Hot Trade Of The Day
To see an expanded version, right-click and select ‘open link in new tab‘. 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 Studies
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 this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM
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.

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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