Tuesday 23rd of February 2021

Good morning folks, I hope you’re well!

Before I jump into my watchlist, I’m just going to mention the fact that I did not take EUR/AUD this morning since it spent over 24hours in the same sideways price action. It remains on my watchlist for a long, however, I am not in a position.

Enough talk, let’s dive in.

FX Watchlist

AUD/NZD

Aussie Kiwi remains on my watch for today, while we are within one area of supply, there is another one just above so I wouldn’t be surprised if we reached that one and broke the previous high to create some liquidity before a potential reversal

EUR/AUD

As mentioned there was a script opportunity for a long on the previous 4hour close, I did not execute it due to the fact the price had spent over 24hours in that zone. Hence I’ll be waiting for the price to drop to the next area of demand before taking a long opportunity.

NZD/JPY

Kiwi Yen remains on my watchlist, it still needs to go a little higher in order to reach the area of supply, as mentioned yesterday I’m not the biggest fan of the daily formation however the weekly is gorgeous in by itself so all in all I’ll be executing the trade if a script entry is provided in that area

USD/CAD

USD to Canadian is struggling to break its previous lows, last time we were in a “different world” back in 2018, however if it does break to the downside, it’ll be interesting to see how it responds to the area of demand since it will be just below a clear double bottom which will provide institutions enough liquidity to push the market higher if they decide so.

USD/SGD

While I can’t trade Dollar Singapore I can still talk about it for those who can 🙂 Such a selfless individual eh!

We are starting to form a double bottom formation which fits perfectly with an area of demand – let’s see what happens once we reach that area.

That’s it for my daily watch for today 🙂

I do have one thing to say, and it’s probably a mistake to mention it at the end of this post – it should rather be at the top…

I used to forecast price action and say that the price was going to start forming a wedge pattern to reach X.XXXX and then reverse. Otherwise we’d see a double top on the 1hour chart before taking a short.

While being that detailed was great, it was also quite problematic since it lead me to believe I could exactly forecast what the market was going to do next.

The truth is, no one knows exactly where the market is going to next, all we know is where we believe the market is the most likely to go towards.

Aim to understand areas where price will likely change directions. Don’t try to forecast how the price gets there, try to forecast where the price will reverse.

Once you start to get good at finding reversal spots you’ll be able to trade continuations with a lot more confidence.

Don’t forget the path of least resistance!

Sorry got stuck into the twitter rabbit hole and forgot to get the links I wanted 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s