Blog: Market Analysis

There was some flurry earlier in the afternoon around 4pm when rumours when drifting of a rejection to the proposal, which cause an initial spike down in the EUR/USD. This spike would have made many people panic (even if for a second), and taken out most stops, including mine.

When the price whipped back a few minutes later, most people were still in shock and thus slow to react, or were too busy cursing their luck. I wasn’t sure about the news at that time, but I could see that the bulls had gained control and the bears were now trapped. I immediately went back long.

Looking at strong bullish sentiment over the past few days, it is very likely that most players are gunning for the psychological round number of 1.300, which we might hit by the end of this week.

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.

Forex Trading | EUR/USD – Trending Up As Planned

After the inverted H&S breakout, the EUR/USD has trended up strongly, going past my original first target of 1.26, and even reaching 1.28. From here, I am bullish in the medium-term, and will continue to trail my stops to maximise my profits. Prices may head down to test the head of of the inverted H&S before heading to make new highs, or it may just pullback to the area of the EMA. Either way, I am expecting bullishness.
https://synapsetrading.com/eurusd-holding-longs/

US Markets – Hovering Near Key Resistance

Looking at the 2 key US indices, they have remained largely unchanged since 2 weeks ago when I last looked at them. Interestingly, the S&P 500 has broke slightly above its previous swing high, but the Dow Jones is still unable to break up. Overall, I am still bearish, and I am looking for a setup to go short. Aggressive players would have already started accumulating shorts, since the R/R is very favourable.

Markets are likely to remain flat till the next major news catalyst, which is likely to be the next FOMC meeting later this month. (http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm). Since the US elections are going to be held in November this year, it is likely that the govt will find ways to prop up the market till then, either through promises of QE3, or by playing up positive economic data.

Forex Trading | EUR/USD – Holding Longs

Tomorrow, I will be going starting my ICT (army reservist) as part of the advance party, hence I will be going in on Friday morning and will then spend the next 2 weeks there as well.

I have liquidated all my stock holdings, and I am only holding on to my EUR/USD longs, which I have been accumulating since it was 1.24. I am expecting a minimum target of 1.26, based on a rough pattern projection.

It could go much higher than that, I’ll see when I get back.

1 Comment/by Spencer Li

Forex Trading | EUR/USD – The Rare “Batman” Pattern

I’m not kidding, there really is such a pattern.
The Batman pattern, or Batman’s cowl, is aptly named after the shape of the helmet donned by the said superhero. Some say that it is a variant of the double top pattern, and can be traded the same way.

On a sidenote, this dark knight did stage a strong rise later in the US session, retracing the drop during the Europe session and heading to test the previous swing high.