Volumetric analysis on October 08



Despite the controversial data that was published on Friday in the United States, the market, as expected, contend everything quickly and did not gain directional movement. Even a pair of USDCAD, which was supposed to gain maximum volatility, actually remained in place and even implemented our trading ideas without disrupting the market structure. Also, without changing the structure, there was a cost for EURUSD and moreover, there were no movements here at all, and our idea may seem boring, but there are no reasons to refuse it. The zone 1.1590-1.1510 for us is the zone of resistance. The emergence of prices above 1.1590 will speak about the end of the downward trend and, maybe, even the development of an uptrend. And the goal to reduce we leave is 1.1420. True, it is worth paying attention that the probability of the realization of this idea is less than it was on Friday, since the volumes that were traded may turn out to be reversal.


The same idea on the USDJPY pair. In the sense that this idea is unchanged. Of course, it is not necessary to count on updating the maximum of 114.55 due to the reasons that today is Monday, and, moreover, the day off is in Japan, but it is possible to count on trade in the outset 114.55-113.30. At the same time, the best action is the purchase, since it is better to assume the development of the trend than its reversal. Reducing the price below 113.30 will speak about a change in trend to a downward. Up to this point, we consider the instrument as long.


On Friday, the pair continued its fall and again without a pullback, thereby again depriving us of a good entry point. What to do today? First, we continue to consider the downward movement as the main one, a rollback can take place at any time. But, nevertheless, the zone of 0.7100-0.7085 is taken as a local resistance, and only a breakdown will indicate a weakness of the downward trend and the likely development of a correction. In general, from this zone, you can try to work for sale with a view to support 0.7055. Are we going to update the minimum today? We can do this statistically, but it’s better not to count on it much.



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Care. The provided market analysis materials are a professional opinion of an associate of ARUM CAPITAL. These materials are provided for infomation purposes only. In no way can the provided analysis be considered as an action signal, neither is it any sort of investment advice (for the purposes of EU Directive 2004/39/EC). ARUM CAPITAL waives any liability for the trading results which may arise after using these reviews. These materials contain NO warranties or guarantees, either direct or implicit, on the precise, complete or confirmed character of the details they contain.

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