Market Commentary.

Hi All,
Today seems to be a very dull day with the crosses not knowing what to do and where to go. Today being a holiday in the USA, do not expect much fireworks. As predicted in my system the GBPCHF has had a breakout to the upside by around 40-50 pips. I expect the market quiet for the rest of the day with not much action happening around.

All this could be the calm before the storm tomorrow with all the news coming out later tomorrow. We have the ECB rate decision and the press conference, then we have the GBP rate hike and all that which should make it a very interesting and highly volatile day tomorrow. We need to watch the market today to base our judgement on what will happen to the crosses tomorrow.

While trading the news, it is very important to notice the S and R. If you watch carefully, most of the times, just before a news releases, the price would be very close to a S or R and once the news releases, there would be a jump in price from there or a break of the S or R. This is a very curious thing which i have noticed during 80% of the times when news gets released. And, as said previously, try to avoid trading the news especially if you are new to the market. They may look attractive but they aint actually.

Happy Trading!!