Thursday February 6, 2020 - 16:13:39 GMT
Share This Story
Global-View.com - www.global-view.com
Forex View: What's Next? EURUSD January Low Taken Out.
When we left off last week it looked like the EURUSD was focused on the January high at 1.1225. However, with the risk pendulum swinging back to on from off, positions taken towards the end of last week have been squeezed out.
In my article, Has the EURUSD Set its Low or High for the Year?, I debunked the theory that the EURUSD low or high for the tear is set in January but did mention that there is a pattern where it has been occurring in alternate years. Since the EURUSD 2019 high for the year was set in January, a continuation of this pattern would suggest that neither the low nor high would be set during 2020.
Well, the January low was just taken out on Thursday, February 6, which leaves only the high set in January at 1.1225 intact.
What does this imply?
By itself, it means little except for those who believe in the January Effect despite evidence to the contrary will take it as a bearish sign, especially those in the consensus who came into the year with a bearish dollar/bullish EURUSD view.
I, personally, will put the 1.1225 level on the backburner but will keep it in mind as the year progresses given the January low/high alternate year pattern should the dollar reverse direction.
In the meantime, I personally will continue to let the Amazing Trader and its Ladder Strategy guide me, where EURUSD 1.0980 (just broken as I type) is the next key level guarding 1.1940 and 1.0878.
I try not to make my articles promotional articles for our Amazing Trader and the AT Ladder Strategy but as you can see by this 4 hour chart, following its logic would have had you trading on the right side with a strategy to taken advantage of it. For those interested, send me an email at email@example.com and as about our current promotions.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."