A quite market. At least for now.
It was a quite week for the currency markets. With no major news events scheduled and no impromptu statements from our friends at the ECB we were faced with a rare period of normalness. (yes, I know it’s not a word so don’t email.)
It wasn’t until Thursday, with European problems temporarily contained that the market shifted it focus to the U.S. Weekly jobless claims were higher that estimates and housing starts declined by over 1%. What I find interesting is that none of the news was all that bad. But the EUR/USD responded with a 100 pip move north signaling a potential sift in sentiment. In this weeks video I discuss 2 possible outcomes for the euro and what specific price points you’ll want to watch for that will key you in on the directional movement.
The quick pop in EUR/USD drove home the fact that we are still in a very risk on/risk off environment. This was further illustrated on Friday when consumer sentiment came in higher than expected and EUR/USD gave up nearly all of it’s gains before settling in to finish the week at 1.2321.
USD/JPY Pays Off Big
Last we we talked about the USD/JPY and I shared an advanced pattern formation that presented a great trading opportunity with a fantastic risk reward ratio. A week later I am proud to report that the trade has completed, hitting my initial target at 78.94 and my secondary targets at 79.50
The AUD/USD Finally Breaks.
I want to take some time this week and look at AUD/USD. For several weeks now I’ve been growing more and more bearish on the pair. On Thursday I outlined my thoughts to my private clients in a closed door meeting and advised them to watch for a key market break. Friday we saw that break.
When you watch this week’s video make sure you stick with me to the end where I’ll discuss my trade ideas for AUD/USD and how you can take advantage of what could be a major shift in direction.
Until next week,
Jason Stapleton
The Trading Institute
