USD weakening move followed by risk aversion move
After the gains during early US session in the name of USD weakening move as the NFP data is less than expected,now risk aversion move is in the process as US data is less than expected.Now we can understand how the same data can have different interpretations.When the US data was less than expected all turn long - but the players donot want to rise further and give profit to them.Now the players are inducing the long holders to liquidate them after the drop.So market is known to create the sentiment and later act against the traders.
Now EURO is dropping in the name of "risk aversion",USD/CHF is dropping in the name of "safe haven currency"..Gold and silver quickly gained the levels in the name of USD "weakening move and also risk aversion".They are also expected to slide in the name of profit booking.
Markets are known to give such attributes from time to time.As traders we have to read the market moves and understand what is in the mind of the players and trade along with them,that may appear that we trade against the trend.
Regards
Dr.Sivaraman
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Comment by sandro chirivi on July 8, 2011 at 3:44pm -
Doctor,
what do you expect from USDCHF?
tks
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Comment by raj patel on July 8, 2011 at 3:45pm -
well siad doctor it is for the ones that have trust in them selfves that the rewards await trades were both ways in the majors but one must be prepared to take trades when suprise hit the market.It can also be said that prices need to go up for selling to take place and down for buying to occure.What was certain for last 24 hours was that all the good news could not push the price up and yet one piece of bad news pushed the majors into highest level of the day what for you may ask and the answer was a gigantic stop hunt to burn all the traders weather long or short.
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Comment by ATF on July 8, 2011 at 3:58pm -
Very well said Doc!!!
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Comment by Dr. Sivaraman on July 8, 2011 at 4:23pm -
Dear sandro
USD/CHF lower level swing and downward stop hunts are happening to make a good rise in this month onwards.
Regards
Dr.Sivaraman
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Comment by Sundaram on July 8, 2011 at 4:33pm -
Dear Dr,
What are the expected false move on Monday? EU & GU sliding?
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Comment by BA on July 8, 2011 at 6:20pm -
Kumar is that you from the ART trade newsletter?
-Well said- the Dr. has a sensible outlook and I have kept in in the forefront of my mind to a very great advantage since I started to follow him-
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Comment by BA on July 8, 2011 at 6:20pm
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Dr. - you see the DOW going down next week?
TIA
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Comment by Barrington on July 9, 2011 at 10:30pm -
Sorry Doctor but I don't understand your post. Who are the "players"? The EUR daily shows consolidation in a wedge shape. The poor NFP report should have been enough to sustain the initial EUR/USD down move, past the wedge support. It hard to imagine that the reversal was due to a sudden change in sentiment. More likely a central bank or a consortium lead by a central bank had it in mind to break the fall of the S&P index, knowing in advance what the NFP was going to show. And the EUR/USD has been correlated to the S&P. I see the hand of market manipulation/intervention, with traders caught on the short side covering.
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Comment by raj patel on July 10, 2011 at 9:02pm
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Hi BA, I use cutomise range bar/renkco/kangi / P&F to cut the noise from my charts they do give near perfect bid/ask ratio and a wave structure then candles or bars base on time.Range bar are base on box sizes and not pips so look up the setting for more precision.
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Comment by BA on July 10, 2011 at 9:19pm
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Raj- which do you rely on most?
Also which size range bars do you find the most effective?
Thanks in advance-
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I find the range bars are the easiest for me to see -
I have been using 8 pips on EURUSD but this week am going to go to 15 with a shorter range bar chart as a trigger- maybe 3 pips to use as an early warning-
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