Beautiful trading day today where Asian highs were taken out by London before dropping to a 70% retracement level of yesterday's low. Once that fib level was hit we saw signs of accumulation then a displacement leg upwards, if you haven't already entered the market by this point, then you could have waited for the retracement giving you a perfect ICT optimal trade...
Today (24/01/2023) we saw E/U retrace ~70% of yesterday's range with a large institutional sponsored move to the upside during the London close. Looking at daily objectives for this pair, they have not yet been met so I expect bullish E/U. We may see swing to the upside during London Open to take Asia highs then a drop retracing ~70% of yesterday's low before...
A really strong indicator for future price action of say DXY for example can be the divergence between it and 5y, 10y and 30y bond yields. Forex markets are driven mainly by interest rates and so if we take a close look at the bond yields we can see them making lower highs whereas DXY is making higher highs. As said, DXY will also follow the bond yields and so we...
Over the coming 4 hours we will see 2 outcomes play out considering NZD's weakening status. We will see the pound grow in strength relative to the NZD and USD leading to a uptrend and possibly a breakout.
Ultimately, this pair would need to go down to build momentum and scoop up some liquidity before turning bullish.
H1 and H4 resistance may halt the rise of gold. Upon rejection of the first or second major resistance it would be safe to short gold as it will then aim for liquidity pools near the bottom. Place 3 TP points to be on the safe side and perhaps move SL into profit to have zero losses.
