Lahore, Pakistan -- (SBWIRE) -- 07/07/2014 -- Omar Elthoukhy from Forex Mentor PRO recently released the Forex Analysis for the week ahead. Last week there were a number of high impact news like the NFP Report and the ECB Press Conference. It seems that ECB wants EUR/USD to fall. Forex Mentor PRO is an educational program that trains traders how to trade on H4 and D1. Anyone interested can try Forex Mentor Pro program for 7 days for $1 only.
This is what Omar says: “For everyone else, I certainly hope you at least relaxed from the business of trading last week. Some of you might be thinking “hey, but there were some moves!”. Yes, that’s entirely true, but, did you take a look at the bollinger bands while all that action was going on? Really tells a completely different story. I will say the exception is the Gbp/Usd, but on most pairs bollingers really didn’t budge, reflective of the fact that the moves were not supported by volume. Why does that matter? Well, to really move price up or down out of ranges, we need market participants to continue to “get behind” the move in terms of volume. Even during Christmas/New Year markets, we may see price move quite a bit. But what happens mid-January much of the time when full participation comes back to the market? Big moves can quickly dissipate, and the real moves begin. We also see on a shorter time basis, that what seems like a breakout, evaporates as quickly as it began. If there is no “real” volume to push the market, it tends to come back to where it started. The Aud/Usd, the Eur/Usd and a few others displayed this characteristic this week. From a weekly chart, it seems obvious. But when you’re actually in the mix, day by day, the market can be wicked in pushing a daily break of an area you have your eye on, than the next day just completely reversing course. So, now when I get back from not trading, I don’t get upset I missed moves on weeks like last week. Best to trade when others are around to support your awesome decisions and analysis.
Last week we saw a huge amount of news, and on Thursday instead of the normal Friday, we got NFP. Always a relief to get that news behind us and set course for the rest of the month. In my opinion, the Gbp/Usd is really bucking the summertime trend of ranges and seems to be making a genuine breakout to the upside. It seems to be resuming its trend. Many other pairs though, continue to stretch for a short time, but by the end of the week, return to where they started. Once again, caution is key for trading this week and nab those profits when you can before we get any reversals off of key levels. I certainly do feel more confident though with this news-heavy, holiday week behind us, that we will have a shot to make some profits…”
About Omar Eltoukhy
Omar Eltoukhy joined Forex Mentor PRO program as a student. Now he is one of the mentors at this program and teaches traders how to trade gold and forex.
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