Highlights going into Thursday, 19 April- Short-term momentum reversed up for $AUDNZD, $NZDJPY, and down for $GBPAUD. While $GBPCHF has begun its decent as anticipated, short-term momentum for $EURCHF is ranked 1st and $USDCHF is 2nd. Conversely, $CHFJPY is ranked lowest at 28th and $USDCAD is 27th. Price range is anticipated to increase for the following pairs/crosses: $AUDJPY, $CHFJPY (also an inside day, doji, and NR7), $EURJPY, $NZDJPY, and $USDJPY. Additionally, pivots for $USDCHF reversed to bullish and $NZDUSD bearish. Included with this post is a table showing the 3-day price range in USD per lot for the 28 majors then color coded from highest (dark green) to lowest (dark red) for each currency pair/cross. Notice how the range leader each day was GBP, flowing diagonally over the last several days, ending with $GBPUSD.
Highlights going into Friday, 20 April- Short-term momentum changes: Bullish - $EURGBP, $USDCAD Bearish - $AUDUSD, $GBPJPY, $GBPUSD, $NZDJPY, $NZDUSD Structural change has occurred for $GBPUSD (bearish) and $EURGBP (bullish). Interestingly there were no pivot gaps on Thursday. The last time this occurred was on 8-Feb of this year. Several of the key range expansions and price reversals from extremes that we have been anticipating and sharing have occurred. However, there are a few pairs/crosses which are likely to experience range expansions including: $EURCAD, $USDJPY, and $CADCHF Attached to this post is an image showing Relative Range Indexes (RRI) for each currency pair to show how daily price ranges have recently increased as a percentage of their typical range. Values highlighted in blue represent 120% or greater of their typical range while those highlighted in orange were 80% or less. Bold black numbers were the highest or lowest of at least 20 days. Make it a great day!
Weekly Highlights going into Monday, 23 April- Weekly price range compression for $EURJPY, $CADJPY, and $USDJPY reached significant levels and are likely to rebound. Weekly price action structures have shifted for the following: Bullish - $AUDNZD, $EURNZD, $GBPNZD Bearish - $CHFJPY, $NZDUSD Confirmation utilizing Andersen Bands and other tactical trading tools are suggested for these actionable trades. A 30-day correlation matrix is included with this post for additional observation. Have a great week!
Highlights going into Monday, 23 April- Range expansion is anticipated soon for: $EURAUD $EURCHF $AUDNZD $CHFJPY $USDJPY Structure changes for the following: Bullish - $USDCAD $EURAUD Bearish - $AUDJPY $AUDUSD $EURUSD $NZDCHF $GBPCAD $GBPCHF $GBPJPY Confirmation utilizing tactical trading tools are suggested for these actionable trades. The image with this post is the short-term momentum heat map for the 8 major currencies ranked highest (1) to lowest (8).
Highlights going into Tuesday, 24 April- Range expansion is anticipated soon for $AUDJPY $NZDJPY $EURGBP of which all experienced on Monday a narrow range of at least 7 days, an inside day, and a doji pattern. Additionally, $CADJPY is also likely to experience range expansion. Potential structure changes for the following: Bullish - $EURCAD Bearish - $AUDCHF $CADCHF Confirmation utilizing tactical trading tools is suggested for these actionable trades. Compare this to yesterday's image of the heat map ahead of the market and consider how the top ranked major USD then performed relative to the others via corresponding pairs on Monday. Additionally, CHF noticeably transitioned away from the worst performer after having been there for quite some time. This was also highlighted as a strong possibility in an earlier post. Make it a great day!
Highlights going into Wednesday, 25 April- Range expansion is anticipated soon for $EURGBP $GBPAUD $GBPCAD $GBPUSD $USDCAD $USDCHF Some of the potential structure changes include the following: Bullish - $GBPAUD $GBPCHF $GBPCAD Confirmation utilizing tactical tools is suggested for these actionable trades. The short-term momentum heatmap continues to define the price action. Attached to this post is the current heat map ranking of the 8 major currencies from highest momentum (1) to lowest (8). Trades are structured by following the rankings moving up or down along with buying strength and selling weakness. Make it a great day!
Highlights going into Thursday, , 26 April- The short-term momentum heatmap has continued to define the price action (see prior posts). Short-term momentum remains intact for the leader (USD) and the laggard (NZD). However, both of these have moved significantly and are at extreme levels. The risk has elevated for new positions and would suggest tightening profit stops. Range expansion is anticipated soon for $AUDCHF $AUDJPY $EURGBP $GBPJPY and $NZDJPY. Some of these could be explosive. Price range relative to typical levels is fairly low across the board. This can be seen with an excerpt from the daily dashboard in the image with this post. The values show price range in percentage of what is typical. Make it a great day!
Highlights going into Friday, 27 April- Similar to the past several days, the short-term momentum heatmap has continued to define the price action. As such, the short-term momentum remains intact for the leader (USD) and the laggard (NZD). However, both of these have moved significantly and are at extreme levels. The risk has elevated for new positions and would suggest tightening profit stops. Long-term momentum also remains intact with little change over the past several days. The top three short-term momentum primary pairs/crosses are: 1. $USDCHF 2. $USDJPY 3. $CADCHF The bottom three are: 26. $EURUSD 27. $AUDUSD 28. $NZDUSD Price range volatility cycling from high to low can be clearly seen with the image attached to this post. The image shows a normalized measurement of price range volatility expressed as a percentage of the typical range for the 8 major currencies. Values less than or greater than one standard deviation are highlighted in orange and blue respectively. Make it a great day!