Eur/Huf – Another Retest of Resistance Area Level
Market
speculators are in a familiar territory as current market structure is
lingering at last month trading highs trading area. It is a strong
supply zone as we view the last time price action was at that focal
block, some good selling rally occurred and sellers may be looking at
this as good pivot area for short trade setup ideas being supported by
technical confluences.To get more news about WikiFX, you can visit wikifx official website.
This is now a third retest of this ceiling and therefore it is a
strong resistance area as market participants failing since last6 month
trading action to push the price up and close past the price handle
level 366.0.
Our prediction is that even though currently there is
a short selling opportunity but maybe not for long as it may struggle
to go down past price handle level 361.0. So it may portend some bit of
accumulation and distribution phase before another breakout direction
plays out trading participants are shelv4ed in this levels.
Jasper
Njuguna is a self-taught discretionary financial markets trader. With
cumulative 5 years’ experience trading the markets and out of which, one
and a half years of that as a prop trader, trading large and mid-cap
American equities at one of the DAY TRADE THE WORLD offices.
Prior to switching career interest to trading, I have 9 years of
experience in senior management roles driving small to large business
development and B2B relations in creating and implementing; learning
& development solutions, programs, organizational strategies &
frameworks, and blended learning approaches for companies and
institutions in Africa.
During the start of this new trading week, both sellers and buyers
were anguished by false bullish breakout that made buyers think it could
probably be a buy since last two days of trading session of both Monday
and Tuesday, market structure was drawing higher highs and lows as
price seemed up past the 50 moving average during this trading days and
stop hunts incurred by fast paced f.o.m.o sellers.To get more news about
WikiFX, you can visit wikifx official website.
Now, yesterday trading session, there was quite a significant price
action sell-off with approximately a hundred pips daily range and market
speculators are now at strong and tested previous demand zone area.
We are predicting either of the three trading scenarios for the
remaining sessions for this week for this pair now that market structure
is at this point;
1. An extended sell-off
2. A short retest of the floor zone and a retrace drive back up to retest the previous fresh pivot low.
3. Or an indecision ranging phase by market speculators
Jasper Njuguna is a self-taught discretionary financial markets trader.
With cumulative 5 years’ experience trading the markets and out of
which, one and a half years of that as a prop trader, trading large and
mid-cap American equities at one of the DAY TRADE THE WORLD offices.
Prior to switching career interest to trading, I have 9 years of
experience in senior management roles driving small to large business
development and B2B relations in creating and implementing; learning
& development solutions, programs, organizational strategies &
frameworks, and blended learning approaches for companies and
institutions in Africa.
Election Years See Weak U.S. Stocks in October
Since the Democratic candidate Biden was reported to be involved in a scandal, he has not yet given a press conference to clarify what happened. Implicated by the scandal, Biden‘s approval rating has lost large ground in the latest polls, with his lead over Trump narrowing by just seven percentage points. With only two weeks left before election day, it is possible for Biden to see a defeat in the election and even be prosecuted unless he can take the situation under control and dispel voters’ doubts. This situation will send additional uncertainty to the presidential election and unsettle investors, drastically shocking U.S. stocks.To get more news about WikiFX, you can visit wikifx official website.
The
analysis that U.S. stocks will gain more if Trump turns the table is
prevailing financial markets, which is mainly based on the speculation
that Biden has a good chance of significantly raising capital gains tax
rates after coming to power. According to Biden's platform, he will
increase the tax rate on capital gains to 39.6% from 20% for taxpayers
earning more than $1 million annually. As a result, investors tend to be
bearish on U.S. stocks if Biden wins out, considering Trump has been
playing a positive role in stimulating the stock market. The concerns of
financial markets come not only the presidential election but also the
full control of Congress. Before the scandal revealed, polls had been
showing that the Democrats could both regain power in the White House
and take control of Congress. Now that Biden has been involved in the
scandal, it is estimated that Trump will win the re-election, but the
Democrats will take charge of the House and Senate. In this case, Trump
will find the next four years extremely difficult.
Since the
situation now is complicated and possible results are various, investors
may either exit the market temporarily, waiting for more details, or
deploy hedging strategies in advance. Previous statistics show that U.S.
stocks see rise more often than fall in election years, but the past
four election years (2016, 2012, 2008, and 2004) all witnessed an
overall drop in U.S. stocks in October. Specifically, the stocks
dwindled widely even in the second half of October, indicating investors
of these years did not deploy their trades until the election results
came in. Looking ahead, if the U.S. stocks continue to retreat in the
next two weeks, the DXY and the Japanese yen will embrace gains, but
gold will struggle in playing the role of a safe haven, considering the
market performance since March that gold prices keep mirroring stock
prices.
Notably, the negotiations between the EU and the UK are teetering on
the brink, which may hamper the prices of GBP and EUR and put a premium
on the greenback. This week, Trump and Biden will face off again on the
morning of October 23 (Friday, GMT+8), and all eyes will be on whether
Trump can make use of the scandal to turn the tide.
Good Opportunity To Buy
The Market structure has been trading
between and respecting the descending trading channel and market
participants are just looking either buying or selling at the touch,
bounce or rejection of this trendlines.To get more news about WikiFX, you can visit wikifx official website.
This week trend view is bullish as price action hit and bounced back
up from the lower trendline and price handle level 0.64 is a previous
strong demand block as attest to strong bullish momentum that that
played out during the trading session month of May. In addition,
technical confluence is agree with our sentiment as price action found
dynamic support at the 200 day moving average and a piercing dragon fly
doji candlestick closing at top of the moving average.The 2 hour chart
below offers a good trade idea and setup as bullish speculators can wait
for a retest of yesterday high range if looking for ideal risk : reward
ratio.
Of course, ones discretion and risk management is
advised.Jasper Njuguna is a self-taught discretionary financial markets
trader. With cumulative 5 years experience trading the markets and out
of which, one and a half years of that as a prop trader, trading large
and mid-cap American equities at one of the DAY TRADE THE WORLD offices.
Prior to switching career interest to trading, I have 9 years of
experience in senior management roles driving small to large business
development and B2B relations in creating and implementing; learning
& development solutions, programs, organizational strategies &
frameworks, and blended learning approaches for companies and
institutions in Africa.
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