I am sitting in the hotel room and checking the markets right now, so I thought to provide you with a market recap about this week for the happy Euro Bund. The mentioned allergic reaction gone on the same day and I was busy to meet some great people at amazing places. I will try to write an article with some images about my traveling for the readers that are interested later this week.
Let’s move to the markets for now. Risk and the opportunities increases as we heading towards to the some kind of important elections/referendum in Europe. To be honest I don’t follow any mainstream news because most of it makes absolutely no sense in terms of positive self-development and it’s quite confusing in my opinion. Besides of Europe’s ever lasting great concerns it is quite more interesting to observing the money supply behavior of China.
Anyway, I begin to observing some foreign exchange pairs again, including GPB/USD, EUR/USD and USD/CAD. Especially GPB/USD was quite attractive with its huge swings this week. Nice opportunities arriving as the risk is increasing but let’s begin with our Euro Bund observations:
You can look at one simple plain daily chart to understand the whole context of this market with its rotational behavior right now.
The market is in an area of acceptance or to formulate it better: we are balanced. When the market is balanced you want to lean on the range/balance extremes. To do this you need only to identify the balance area on a higher timeframe such as the weekly or monthly profile. I would like to point out the monthly perspective with its huge acceptance area:
And with a look at the weekly profile, we can observe that the market opened inside of the previous week’s balanced value and range with the goal to trade the extremes of that particular profile as it has been posted previously on PB.
Actually, that’s it. Simple like that. I have catched the move from the lower extreme to the higher extreme and awaiting a potential short trade right now. The only thing that bothers me is the freaking poor high. Again, it depends where the market will open today as we have quite a balanced daily profile from yesterday.
Keep a calm and open mind!
*Charts are from Sierra Chart, our platform of choice.