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Trend Health - Majors
I was just running some of the Open Orders data through my super-cool open orders analyzer, and I thought I'd share the majors for you here with my personal interpretation. I realize this borders on market commentary, which I vowed I wouldn't do anymore, but its a bit different because I'm not looking back, this is look-forward. By the way this is not investment advice (just cover my arse there - it's retarded that we have to keep stating that fact in case some moron loses his account and then tries to sue us, but thats the way it is). So this is just how things look to ME, got it?! By the way, I'm still unsure as to just how useful this data is - does it give one a good picture of market pressure, or will the market just behave as if this information did not exist. I do not know the answer to this.
EURUSD
GBPUSD
LOGIC dictates that knowing where all the buyers and sellers plan to buy and sell would be useful, but it may not make any difference. Other forces in the market may overwhelm this information. This may also just represent the dumb money. There is only one way to find out - forward test. |
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According to this, the EURUSD is touching some minor resistance at 1.3680 but has a ton of support below. These sell orders are probably just profit taking as people exit close to the record high. I'd say that going short here would be like trying to walk down an escalator that is going up. The market appears to be massively bullish. Above this 1.3680 resistance appears to be a void of empty space. Because the EURO is close to its historic high, my guess is that it might just bob up and down on this support until something gives. Who knows, thats just a guess. But anyway the trend looks pretty damn healthy, does it not?
Here's the Cable, and its a slightly different story by the look. Sellers ARE coming in - the giveaway is that stops are appearing above this big seller group, you see? BUT there is a LOT of support. I imagine it will be a retracement (these are daily charts by the way). Very strong band of buying around 1.9750, which off the top of my head also looks like a fib level (haven't measured it).
Not much to say here, currently on a minor support, possibly profit taking, and I see some buy orders below, but the overwhelming majority appear to be sellers. It looks like the opposite to the EURUSD (which makes sense, seeing as they tend to move in tandem). A very healthy trend, but again because its such a mature trend I currently don't see much opportunity to join it.
Now this is more interesting. This is an uptrend, but I see major resistance around the 120.00 and a ton of sell orders above. Yet below there is strength too. One would think that this would result in a tug of war that would cause this currency to go sideways (it seems to be just going into a sideways pattern). To my eyes the bulls look a tad weaker and if the support at 118.50 gets eroded in consolidation I'd expect this to go down. But the point is, I wouldn't go long until it got over that 120.00 barrier - that looks like a brick wall.
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