EUR/AUD Bounce at the MEGATREND Moving Averages

EUR/AUD Technical Analysis

  • EUR/AUD Inside outside pattern bounce
  • The move is bullish
  • Intraday target is 1.4970 zone
  • Potential swing target os 1.5230
  • The ATR is 132 pips

MEGATREND MAs: Bullish

D1 Chart EUR/AUD

  1. Double top valley
  2. Low prior to V shaped reversal
  3. Bounce above the MAs – IO pattern ™
  4. Intraday target
  5. Swing target

The EUR/AUD is bullish and the price is trying to get the upside momentum so it could continue climbing back up. At this point we can see that the price is trying to reach Q L5 resistance – 1.5015. However it will need more EUR strength vs AUD weakness.

The IO pattern is my proprietary pattern that I teach on my MEGATREND course. It represents the bounce off the MAs with the close above the MAs happening at the same candles. It is validated also by the specific wick which signifies strong buyers. 1.4830-50 is the entry zone.

Being a minor cross I recommend trading it with lower risk. The ATR for the last 14 days is 132 which indicates a volatile market. Intraday target is 1.4970 zone while the swing target is 1.5230. Swing target will only be reached if the price proceeds above 1.5015 and EUR fundamentals are stronger than the AUD.

This analysis, the IO trade and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 long trade on the EUR/AUD.

Cheers and safe trading,

Nenad

EUR/USD Downtrend Continues at the Upper MAs

EUR/USD Technical Analysis

  • EUR/USD Rejection at the upper zone
  • The move below MA is bearish
  • Trend is still strong
  • Consolidation at the bottom
  • 0.9922 is the confluence

MEGATREND MAs: Bearish

D1 Chart EUR/USD

  1. Higher high – double top
  2. Lower low – important support
  3. Deeper retracement
  4. Trap trade
  5. Swing target

The EUR/USD is bearish with the whipsaw market action seen on Friday. The reason is the profit taking coupled with the ECB rate hike of 75 basis points. There are 2 ways how EUR/USD is moving. The pair rallies after the ECB hikes rates or the news of possible rate hikes. It goes down after the news of higher than expected US inflation. So there is a bit of headline risk in the pair.

Technically it is still bearish. The MEGATREND MAs crossed lower but we can see a possible inverted bullish SHS formation if the pair hits the confluence zone 0.9922. We can expect some major range until the market decides where the next move is going to be. 0.9922 is the intraweek target. If it breaks then we should see 0.9793 as the swing target. The trap trade is in progress and the original entry happened at the confirmation of the Trap trade in the 4h timeframe.

This analysis, the Trap trade and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 short trade on the EUR/USD.

Cheers and safe trading,

Nenad

ETH/USD Bullish at the Moment

ETH/USD Technical Analysis

  • ETH/USD Bullish move should continue
  • The expectation prior to Merge is bullish
  • POW > POS protocol implementation
  • Cup with a handle potential trade
  • 1735 > 1802 > 2429 Potential mid term

MEGATREND MAs: Neutral

D1 Chart ETH/USD

  1. Order block
  2. Buying pressure at the low
  3. Entry zone
  4. Intraweek target
  5. Swing target

As it was planned back in 2019, the foundation behind the popular crypto-currency first officially announced the transition from proof-of-work to proof-of-stake (Ethereum 2.0) last year. The original plan was for it to happen “over the next months”, but apparently the preparation took much longer. The latest information regarding this issue is that the event called Merge, is scheduled for September 19. The news was reported by the Wired portal and is not official. We will find out in a week or so how much these sources are valid. However, the price of Ethereum should jump significantly in that case.

Technically it is bullish. The MEGATREND MAs are crossing but we can see an inverted bullish SHS formation in addition to a cup with the handle. I am long at 1575 and I will keep the trade until targets are hit. Bullish bias on Ethereum due to the Merge and technicals. Targets are 1735, 1902, 2239 and 2492.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course.

Cheers and safe trading,

Nenad

GBP/CAD Trap Trade in Progress

GBP/CAD Technical Analysis

  • GBP/CAD trend should continue
  • Yesterday’s candle low broke previous lows
  • Pinbar rejection
  • Trap trade
  • 1.5050 is intraday target

MEGATREND MAs: Bearish

D1 Chart GBP/CAD

  1. Trendline touch
  2. Strong support at Q L4
  3. Trap entry
  4. Intraweek target
  5. Swing target

The GBP/CAD is still bearish. Yesterday’s Bank of Canada decision was to hike 75 bps which was already discounted in price. However, the statement itself was hawkish as the BOC will continue to fight inflation strongly. That is a cue for further rate hikes and a sign of hawkishness.

The first entry I had was closed yesterday with +53 pips profit. Today the price retested the lower MA which called for another short entry as a trap trade. Ideal trap entry was at 1.5141. Keep in mind that yesterday’s candle broke previous lows which is a sign of continuation. The intraday target is 1.5050 ( it’s almost a +100 pips intraday trade potential) with 1.4928 and 1.4676 as swing.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 short trade on the GBP/CAD.

Cheers and safe trading,

Nenad

EUR/USD Daily Bullish Counter Trade

EUR/USD Technical Analysis

  • EUR/USD Morning star/CBR combo
  • Daily is strongly bullish
  • Pinbar rejections
  • 1.0020 is the ATR projection high
  • 1.0079 is the potential target

MEGATREND MAs: Bearish

D1 Chart EUR/USD

  1. Support line
  2. Swing high
  3. Pinbar rejections
  4. Morning Star emerging/CBR
  5. Final bullish target

The EUR/USD has a strong momentum on a daily time frame. We can see that the price is making a bounce above the horizontal line of support which is in line with M L3 pivot point. We might expect the price to push further up if the level holds. The first intraday target is 1.0019 which is the ATR projection high. A strong open is characterized by CBR and Morning Star patterns off the support. Both are bullish. This is a counter trend trade.

The entry came after the Morning star/ CBR signals. As I am a bit late in the entry I entered with 0.5 % risk and I will add 0.5 % on a retracement towards 0.9840. I expect the bullish move to continue as the ECB signaled more aggressive monetary policy.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 long trade on the EUR/USD. I will add 1 more entry on a retracement as a part of my risk management portfolio and system.

Cheers and safe trading,

Nenad

EUR/JPY 4H Bullish Sequence Trade

EUR/JPY Technical Analysis

  • EUR/JPY Rejection above W H5
  • Daily is strongly bullish
  • 139.20 needs to hold
  • Ideally price should stay above W H5
  • M H3 is next target if remains bullish

MEGATREND MAs: Bullish

H4 Chart EUR/JPY

  1. Bullish order block
  2. Swing low
  3. Bullish order block retest
  4. Retest of the W H5
  5. Final bullish target

The EUR/JPY has a strong uptrend on daily time frame. We can see that the price is creating an empty space between itself and the Megatrend moving averages. It means that there is a strong trend. We move down to the 4h timeframe to cherry pick an entry. Drilling down to the 4h time frame means that we want to see a rejection in the 4h zone since the daily trend is strongly bullish.

The entry came after the W H5 rejection. However as the entry has been made on a living candle (candle that hasn’t closed yet) it is important that W H5 is not taken out. In that case we should see a continuation up. If the candle breaks and closes below W H5 we might see a drop.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 1 long trade on EUR/JPY with an entry right at the 4H bounce signal.

Cheers and safe trading,

Nenad

EUR/USD Retracement as the Bears are Battling the Support

EUR/USD Technical Analysis

  • EUR/USD Dragonfly doji pattern
  • Selling the rallies
  • Bearish trend continues
  • Support needs to break
  • M L4 then Q L5/ML5 are targets

MEGATREND MAs: Bearish

D1 Chart EUR/USD

  1. Interim support
  2. Mini swing high
  3. Dragonfly doji and entry zone
  4. First intraweek target
  5. Final monthly target

The EUR/USD is still bearish. However the market bounced today with momentum. The trend is still bearish and the market might be nervous due to ECB next week. However, I found the zone where the buyers turned to sellers and we could expect the move down. 1.0015 zone is where sellers are and are trapped by Megatrend.

The rally came after a dip to 0.9915 due to potential profit taking and the investors thinking about the more aggressive ECB. Dollar still holds the ground however. The intraday target is 0.9970 (ATR pivot) followed by 0.9925 if the atr pivot breaks. We might see longs liquidating their positions which might be further bearish.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining 2 short trades on EUR/USD with an entry right at the Megatrend trap signal.

Cheers and safe trading,

Nenad

EUR/JPY Triple Top For a Good Short Trade

EUR/JPY Technical Analysis

  • EUR/JPY Triple Top Formation
  • Selling the rallies
  • Bearish trend continues below point 1
  • 134.30-60 is the first target

MEGATREND MAs: Bearish

D1 Chart EUR/JPY

  1. Double bottom support
  2. Higher high
  3. Double top
  4. Intraweek target

EUR/JPY is bearish. Technicals show a clear downtrend with many attempts to break the blue line point 1 as the price is bouncing. However, today’s candle might break it lower and continuation below the point 1 should lead the price lower to intraday target -136.57 and eventually towards the intraweek target 134.31 or 132.41 depending on the ATR and momentum.

These are the reason when Yen is getting stronger:

Yen strength

1.100% risk off sentiment

2.Gold up

3.Commodities prices down

4.Equities down

5.Yen strengthens as a result

It happens because the Japs can get cheap credit, so they invest overseas heavily. When it’s risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining the short trade on EUR/JPY with an entry at 137.32.

Cheers and safe trading,

Nenad

Gold Real Bearish Momentum Below 1850

GOLD Technical Analysis

  • Move down from W L4
  • Selling the rallies
  • Bearish trend continues below 1850
  • Support is near

MEGATREND MAs: Bearish

H4 Chart GOLD

  1. Important support
  2. Swing high
  3. Outside bar
  4. Intraday bearish target
  5. Final target

GOLD is still bearish. Technicals show a clear downtrend with many failed attempts for counter trend moves. The price is straddling the MAs and I expect further bearish continuation. Selling the rallies is an option with the 1750 zone being a strong support. If the market breaks 1750 only then we will see increased bearish pressure. The target will be 1729 which is Monthly L3.

Gold movement is influenced by the USD where we naturally see the negative correlation. Other factors to influence GOLD price movements are:

  • Gold production
  • Global money supply
  • Global inflation
  • Interest rates
  • Currency debasement
  • Global imbalances
  • Government reserves
  • Safe haven demands.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I closed all of my short positions. I am planning to sell the rallies towards the 1770 zone.

Cheers and safe trading,

Nenad

EUR/USD Deeper Pullback Short Trading Setup

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EUR/USD Technical Analysis

  • Move down from MH3
  • I have a short position
  • Bearish trend continues
  • 6 point bearish move

MEGATREND MAs: Neutral

D1 Chart EUR/USD

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  1. Swing high
  2. Order block
  3. Lower high
  4. Lower low
  5. Order block retest
  6. Potential target

EUR/USD is moving down. We have witnessed a deeper pullback to the long side. In my Telegram group we could see great positions from both long and short trades in the last 2 weeks. Now I am shorting it as the price is showing double top at M H3 resistance. It’s also a retest of the order block. We should see a move and continuation down below the trend line which might be broken soon. Look for 1.0171 as the intraday target and possibly 1.00781 if the price continues lower.

The ECB policy diverges from the FED policy. So, in that case I expect more EUR weakness generally. In the example above, technicals are still generally very bearish and the deeper pullback is a part of the EUR/USD bearish trend. So, the price should go down and only if it breaks MH3 1.0371 the trend might change, and we could start buying the dips.

This analysis, and all entry signals and targets are a part of the Megatrend system and a trading course. I am maintaining the EUR/USD position.

Cheers and safe trading,

Nenad

BTC/USD Going Up as The Ascending Trendline Supports the Move Up

BTC/USD Technical Analysis

  • Move up as expected
  • I am holding the long position
  • Bullish trend slow but steady
  • M H3 then M H5 on strong breakout

MEGATREND MAs: Bullish

D1 Chart BTC/USD

  1. Trend line start
  2. Swing high
  3. Higher low
  4. Higher high
  5. Higher low
  6. Breakout target

The BTC/USD has become an asset. We can spot the strong correlation to US equities especially US100 and SNP500. The market is moving in slow but steady uptrend. You can see my position in the real account and I am of course holding it. When everyone were selling I was buying the BTC due to obvious reasons. The price is engaged in an ascending flat top triangle and the first target is around 25000.

Why do you need inflation? For equities to climb higher. Basically, when there is inflation it means goods and services are being priced higher. which means more revenue for companies. On the flip-side, it can mean more costs for companies. The positive correlation in the BTC/USD and Equity markets is evident and the market should move to the first target. If 25000 breaks we are on the way towards 31000 zone again.

This analysis, and all entry signals and targets are a part of the Megatrend trading course. I have 1 long position that I will maintain until the intraweek / monthly target and possible swing.The first target is 25000 while the swing target is 31300. Position management is very important once you are in a trade.

Cheers and safe trading,

Nenad

GBP/JPY Down We Go as the JPY Strengthens

GBP/JPY Technical Analysis

  • Bearish downtrend formation
  • Sequence trade is playing out
  • We should continue lower
  • 162.50 and 162.00 are targets
  • 164 pips is the ATR

MEGATREND MAs: Bearish

H1 Chart GBP/JPY

  1. Double bottom point 1
  2. High
  3. Double bottom point 2
  4. Final target

The GBP/JPY is moving lower as a part of the sequence trade that has started on a weekly time frame. Weekly shows bearish CBR pattern. The Daily is moving down along with the H4 time frame as the price is running away from the MAs. H1 price is retracing but there was an IO pattern 2 bars ago. Additionally when we have 100 % risk on scenario we could see:

1.Gold up

2.Commodities prices down

4.Equities down

5.Yen strengthens as a result

During the risk on scenario the Japs can get cheap credit, so they invest overseas heavily so when it’s risky, they bring the money back creating demand for Yen. Technically we could even go lower than the final target but the first thing for bears is that the price closes below 163.34 in H1 timeframe. Have in mind that the intraday target is 162.04 according to the ATR. It’s Monday and we could see some retracement before going fully down.

This analysis, the sequence trade and the IO pattern are a part of the Megatrend trading course. I have 1 long position that I will maintain. The intraday target is 162.04 while the intraweek target is 162.00. There is no swing target yet .

Cheers and safe trading,

Nenad

AUD/JPY Uptrend Continues

AUD/JPY Technical Analysis

  • Bullish uptrend formation
  • Double top has been broken
  • We should continue higher
  • 94.50 then 95.30
  • Ascending trend line

MEGATREND MAs: Bullish

AUD/JPY Price Forecast

H1 Chart AUD/JPY
  1. Double top point 1
  2. Low
  3. Double top point 2
  4. Final target

The AUD/JPY is moving higher and the price is breaking above the double top. We should see a continuation of the move up as the price is bullish. At this point the first resistance is 94.50 and if it breaks the high we will see 94.70 and 94.35. The yen is weakening vs AUD. When the yen weakens we can assume the 100% risk off sentiment might happen. It means:

1.Gold down

2.Commodities prices up

4.Equities up

5.Yen weakens as a result

It happens also because the Japs pump their money overseas, which means they sell Yen and buy foreign currency. During risk the Japs can get cheap credit, so they invest overseas heavily so when it’s risky, they bring the money back creating demand for Yen.

This analysis is a part of the Megatrend trading course. I have 1 long position that I will maintain. The intraday target is 94.50 while the intraweek target is 95.30. There is no swing target yet .

Cheers and safe trading,

Nenad

GOLD Order Block Support and Inv SHS Pattern

Gold Technical Analysis and Trading  Strategy

Gold H4 chart
  1. Order block
  2. Left shoulder
  3. Head
  4. Right shoulder
  5. W H3 target

GOLD is in downtrend and we can see that it has been supported at the order block. Inverted head and shoulders formation provides us with potential buy the dips scenario. Money has moved to cash so we have to watch gold prices in the next couple of days, should there be a rebound. We should be keeping an eye on all Equities Markets, Gold, Bond Yields. Oil and gold prices rise with higher GDP growth and demand, especially from Emerging Markets and their central banks.

This is purely counter trend strategy trade. We should see a rebound if the 1795 holds. Have in mind that this is the NFP week and we need to be careful with the risk placement. Especially if we see a Yen strength (risk off scenario), Gold will bounce then. Equities down – gold up. Watch the chart and especially camarilla levels.

This analysis is a part of the Megatrend trading course. I have 1 long position that I will maintain. The intraday target is 1824 while the intraweek target is yet to be determined. There is no swing target yet but it might happen if the price breaks MH3 pivot.

Bottom Line

  • Bullish SHS formation
  • Order block support
  • 1805 zone is buyers zone
  • Buying the dips
  • Counter trend setup

MEGATREND MAs: Bearish

Cheers and safe trading,

Nenad

GBP/USD Scaled-in Short Trade Added

GBP/USD Key Levels

  • Clear break below W L4
  • Bearish trend continues
  • 1.2108 should be next
  • Bears must hold below 1.2230

MEGATREND MAs: Bearish

GBP/USD Technical Analysis on H4

  1. Trendline start
  2. Support low
  3. 2nd trendline touch
  4. New entry
  5. Target

The GBP/USD is in a short trend. Megatrend moving averages are bearish and we can also spot daily bearish candles along with H4 bearish rejections. The ongoing problem in the UK with Scotland can also weigh on the price. Currently 1.2160 is strong support and intraday break of that level should move the price lower. W L5 is 1.2108 and the ATR projection is 1.2050.

However, if the market doesn’t hold below 1.2183 we might see 1.2230 again and that would endanger the bearish trend on the GBP/USD.

Trading Strategy

I am selling the rallies and two short positions are there for a continuational move down.

This analysis is a part of the Megatrend trading course. I have 2 short positions that I will maintain. The intraday target is 1.2108 while the intraweek target is 1.2060. There is no swing target yet but it might happen if the price breaks 1.2050.

Cheers and safe trading,

Nenad

CAD/JPY Breakout Above the Pattern

CAD/JPY Technical Analysis

  • Buying the dips
  • Bullish trend
  • M H5 is the next target
  • MA angle is sharp

MEGATREND MAs: Bullish

Daily CAD/JPY

  1. Point 1
  2. Point 2
  3. Point 3
  4. Target zone

The CAD/JPY is undergoing a strong trend. The trend is bullish and I expect the market to push further up. At this point MEGATREND is showing a good potential for continuation of a long trend with new entries shown in the chart. Additionally, the Bank of Japan presented the summary of the June meeting, not adding a real lot to what we already knew from this unchanged policy meeting.

Board members did express concern about a sharply falling yen though. But they still do nothing about it and we see that there is no intervention in the open market yet. There is no strong data for the JPY this week but we will see mr.Powell speaking in the next few days so it might add also to Yen volatility. Equities will also move along with the Yen.

This analysis is a part of the Megatrend trading course. I have 2 long positions that I will maintain. The intraday target is 105.67 while the intraweek target is 106.05. There is no swing target yet as first we need to see M H5 taken away and only then we will see the continuation of a trade as a swing position.

Cheers and safe trading,

Nenad

EUR/USD Selling Should Continue

TOP XE analysis

EUR/USD Key Levels and Strategy

  • Selling the rallies
  • Shooting star in the zone
  • The target could be 1.0350 zone again
  • 1.0430 is the intraday target

MEGATREND MAs: Bearish

EUR/USD Technical Analysis

EUR/USD Daily chart
  1. Trend Line
  2. Temporary Low
  3. Pinbar in the Zone
  4. Target zone

Technically the EUR/USD is still bearish. We should see the price moving down as the trend and daily signal show potential down move. However, the momentum of EUR/USD is crucial now. If the price manages to stay below 1.0500, we should see a move down. However, there are still buyers around the M L4. The expectation is still to the downside with the EUR/USD 1.0430 as intraday target. Swing target is 1.0350 zone for the EURUSD.

This analysis is a part of the Megatrend trading course. I have sold the rally in the zone and will keep the trade unless all the way until the intraday target has been reached and scaling out happens (close of 1 position).

Cheers and safe trading,

Nenad

EUR/USD Black Widow Shows Potential Up Move Continuation

EUR/USD Key Trends

Main Trend: Bearish
Mid Trend: Bullish

Interim Trend: Bearish

M15 EUR/USD Chart

  1. The first entry zone
  2. Trend line rejection and the possible scale-in entry
  3. 3 trends are aligned as bullish
  4. The target

EUR/USD has formed a bullish structure that might be rejecting the trend line as the new entry forms. 1.0470 is the first entry ans we might be seeing another one soon.

Fundamentals

Fundamentally, things are not looking very bright in the eurozone. Russia decided to cut the flow of natural gas to some European countries like France and Italy. Additionally, Germany is making preventive measures to deal with a potential supply cut.

I reckon the days of cheap fuel are gone in the West. Maybe in countries aligned to Russia and OPEC it will be okay for prices. We are net consumers of oil/fuel, and we have closed many refineries. It seems the West has picked its side against Russia, and the US and Allies don’t have a good reputation in Venezuela and Iran. Plus the Saudis are cunning, they will do Oil contracts in Yuan.

Technical Analysis

Technically we should see the bounce. The Black Widow shows an intraday range plus the clear entries. If we manage to get another entry soon, momentum will rise and trend should continue. In the case of rising EUR/USD price for today, I advise scaling out at important levels or booking full profits.

Don’t forget we will have Lagarde speaking and June PMI which could sharply drop the EUR/USD again. There is still ongoing war in Ukraine and above mentioned problems with Russian supply of gas. This could all reflect on the price of EUR/USD. Germany’s Ifo business climate index will follow on Friday so this trade should have already been closed by that.

However the intraday technicals are bullish and that’s where our trades come from.

For a look at all of today’s economic events, check out our economic calendar.

Get the Black Widow HERE

Cheers and safe trading,

Nenad

GOLD Megaphone Formation in the H4 Timeframe

GOLD Technical Analysis

  • Selling the rallies
  • Megaphone pattern
  • Retracement could happen
  • Watch camarilla as potential targets

MEGATREND MAs: Bullish

H4 GOLD

  1. Trend line start
  2. Higher High
  3. Highest high
  4. Low
  5. Lower low
  6. The end of megaphone

As we could see from the technical point of view, GOLD is having an uptrend while still being sold on rallies.This analysis is a part of the Megatrend trading course. I have been selling the rallies all the way.1880 is the next point where we could start selling providing that the prices retraces to that level.

With the latest CPI inflation reading among other things, real wages are falling and consumer sentiment is taking a big hit. We have the backdrop which is stagflationary. If the market manages to stay above the left shoulder it should bounce up. We should also keep an eye on the AUD. The AUD has a high correlation to gold due to Australia’s extensive gold mining operations.

As gold prices fluctuate, this increases or decreases the amount of funds transferred into AUD to make purchases of the metal. These transfers essentially change demand for the currency and can directly cause changes in the AUDUSD currency pair as well. Those seeking to evaluate exposures in AUD and BRL currencies might also look to the price of iron ore as a potential driver of returns.

Gold is widely regarded as a currency in its own right and thus, during times of US dollar weakness, gold often increases in value as many investors choose to own gold rather than US dollars.

However at this point we can use technicals to sell GOLD. 1880-90 is the next dynamic zone where I would sell. My shorts are still going well as you can see on the chart. Targets are 1857 and 1843 followed by 1820 but only if momentum keeps strong. I am scaling out close to each target while keeping the stop at the BE. Targets for the current move are 1850 followed by 1843 and 1819. Selling zone is the 1880-90

Cheers and safe trading,

Nenad

GBP/USD Up We Go as the Bullish SHS Pattern Emerges with the Pandemic Pattern

GBP/USD Technical Analysis

  • Buying on a dip
  • Bullish SHS pattern
  • Consolidation-Breakout expected
  • Pandemic Pattern on Daily

MEGATREND MAs: Bullish

Daily GBP/USD

  1. Trend line start
  2. Bullish resistance
  3. Bullish bounce
  4. Dragonfly doji
  5. Target

The price is retracing. Daily price action suggests a bullish continuation. After the price has made a strong daily momentum bounce we can see Daily providing good buying opportunities with the Pandemic entry (learned on MEGATREND course – 90 % win to loss ratio).1.2530-70 is the buying zone. Watch for the M H3 and W H4 targets.This analysis is a part of the Megatrend trading course. FTSE has a large number of Natural Resources and Services companies in that listed exchange so the GBP is heavily influenced by the capital flows from the financing hub of London.

Construction PMI came above 50 today so it indicates the industry expansion. It’s as urvey of about 150 purchasing managers which asks respondents to rate the relative level of business conditions. The data for construction PMI is a leading indicator of economic health as the businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy.

If the market manages to stay above the left shoulder it should bounce up. However, the loss of 1.2450 is bearish and the price on the cable is going to drop towards 1.2375. I am still buying the dips as the bullish movement should be next on the table.

For a look at all of today’s economic events, check out our economic calendar.

Cheers and safe trading,

Nenad