Good evening all.
So you may be aware that China will not be trading this evening, so we are down a pool of liquidity. Those trading FX be mindful that with China down, the asian session high and low may be volatile. If its beyond 50 pip range you will know they were running for stops and they are not “accumulating” positions for the next sessions to exploit.
Below I have attached the sentiment traders screenshots mentioned for you to observe.
I have also added Hyblock for Bitcoin. One thing to pay attention to on the Hyblock is the 7 day chart….There is a small zone with over $4billion short liquidations at that point. Now what has my attention is prior to that zone appearing, notice the chart below, I have labeled it “7 Day Split” there was $3.8billion, then it increased to $4.2 billion (the white line shows this) . Now why has there been an increase in shorts at that particular point? News leading traders to go short? Has something happened that may spark a sell off?
NOTE: FX GUYS
I have attached the ADR chart for GBPSUD which shows that if GBPUSD maintains this move to the upside we can anticipate price to continue higher to achieve a full 3 x adr move up. Of course, you are looking for price to maintain the 50EMA on the 1hr. Notice in the chart that they have not yet fully taken the 2 x ADR range which could be a sign of weakness if they fail to get above this zone.
EURO – By principle, EURO does not have a peak formation as it has been in a range for some time now. However, the moment it breaks the 1.0900 zone, then the day price closes and its above this zone, we would be expecting a 2 x ADR move up. Euros average daily range is around 97 pips. So from 1.0900 we assume 97 pips up then that would give us the level 2 rise assuming that the current range is a level 1.
The Eurodollar hedgers chart shows us that hedgers are starting to build up positions in anticipation of EURO going down, once the chart shows a reading towards the red zone, that would be the point we would expect euro to start faltering and then that chart reading would reverse and go back up towards the green line. I explain more in detail in the video.
Tomorrow Morning we will have a better view of things once we have the reaction to asia being closed.
Will update you guys with the potential plays for Monday.
Mad Love
T
