New trading month sees the usual crop of PMI releases. China has already reported today we have the numbers from Italy, Spain and France as well as the UK.
Although UK economy is predominantly services based, the manufacturing number has been managing to hold above the key 50 level. From a technical perspective so far best move for GBP has been against the AUD with cable confined to a relatively tight range. However, we should start to see some movement once the PMI number has been released, and the new week gets under way.
Interestingly cable on the daily chart is sitting neatly between the 200 & 100 mas....
The Aussiedollar weekly chart is another classic example of how patience can be richly rewarded following the extended congestion phase of March to August 2014 which saw the pair trade in an increasingly tighter range around the VPOC (volume point of control) in the 0.93 to 0.94 price area. This type of price action is always a signal of an explosive move once the breakaway occurs.
And as we can see clearly on the chart this phase of price action came to a dramatic end with a wide spread down candle which triggered the volatility indicator (the purple arrows top and bottom), as the price action moved outside the average true range in this time frame.
The price action to the downside was duly confirmed with a close well outside the volatility candle and further confirming the inherent weakness in the pair. Since last August the trend lower has also been perfectly confirmed and defined by the dynamic price pivots in a...
Question
Hi Anna, Firstly, I just wanted to say I've just finished "Forex For Beginners" and I thoroughly enjoyed the book; found if extremely helpful and useful. Opened my first forex account on Friday of last week. Made some mistakes at first, lacked the discipline to follow my strategy, I think I was a tad over keen to trade at first. I've just purchased "A Complete Guide to VPA" so I'll start on that tonight. I have a quick question though if you wouldn't mind answering. In Forex for Beginners, you use the Currency Strength Indicator to look for potential indicators of an upcoming reversal. And then from this you use the currency matrix and analysis to confirm the reversal. I was just wondering, if you could use the same strategy to indicate a continuing trend? If this is explained in the book I've just purchased I apologise, I just thought I'd ask.
For example, if both the Aus and Usd are...
