Currency market: The EUR/USD day trade
|Today is Monday and day trades are off balance to day trade levels. Day trades today and everyday remain at an equal chance to rise higher or trade lower. Levels are off due to the tight relationship to EUR Vs USD and non USD currencies to USD. This is seen from day trades and tight relationship of interest rates but also seen and shown in the FX weekly on a larger scale over time between EUR/USD and DXY. Markets desperately require a breakout to trade wider ranges.
The new definition of markets is Mathematical certitude created by men and instituted by central banks. In this context they gave us levels, ranges and targets to trade by many styles short and long term. Took all these many years to offer and understand trades as target to target. Everything and anything in between doesn't apply.
Its Mathematical certitude at work offered by central banks but eliminates all the unnecessaries involved. If ever my information was published, all would have a greater understanding to my words but also to the simplicity to what was created and traded.
Priced In is a good example to not necessary.
Here's EUR/USD day trade. 1.0504, 1.0517, 1.0528, 1.0530, 1.0531, 1.0544, 1.0551, 1.0564, 1.0571, 1.0578, 1.0585, 1.0598, 1.0605, 1.0612.
Economic announcements and priced in
Within the context of day trades levels, every economic announcement is found within the day trade levels. This happens every trade day. And it doesn't matter if the economic announcement is within range or far off base. This concept serves for every financial instrument on the planet.
Only on extremely rare days does prices leave daily levels. When this rare event happens, truly free money trades exist. Its the "I won the lottery" event. Highlighted specifically are normally traded markets as central banks created their systems for normall trades and professionals that require currency trades. A Proctor and Gamble executive once noted on CNBC the company trades 100's of currencies per day.
An economic announcement then trades from top to bottom, bottom to top or somewhere in the middle. Highlighted again are the 7 hours allotted time for day trades as the vast majority of financial instruments see their best moves.
For the economic announcement hardly matters to the 7 hour trade and a total non event for 24 hour and weekly trades.
USD vs non USD
Note 1.0528 and 1.0530. The non USD to USD relationship signifies a deep marriage. This concept applies to all currencies. if one currency is affected by any market event then all currencies are affected due to the deep deep marriage to overall prices shared by all currencies.
But it comes back to this Mathematical certitude deal and the ranges allotted to trade. Its not the assault to exchange rates but to interest rates as central banks destroyed the concept to free float interest rates as the greatest and historic staple to markets and movements.
Target to target
For today only, target to target for longs and shorts are located at 1.0504 and 1.0612. Today is a horrible day for day trades. Added to horrible is the 24 hour trade target at 1.0585 and note 1.0585 was factored for today on Saturday.
Should inform EUR/USD today isn't traveling anywhere.
Normal day trades
If today was normal then longs and shorts are located at 1.0531 and 1.0605. If a bonus day happens and EUR/USD traded to 1.0612 or 1.0504 then extra pips are added to trades. Target to target would be located from 1.0531 to 1.0605 or 1.0605 to 1.0531.
Note the bottom points of supports at 1.0528, 1.0530 and 1.0531. Not only supports but at neutral locations. Means EUR/USD has an equal chance to travel higher or lower but only for today's off balamce day. At 1.0585 contains neutrality but again only for today. On normal days, we can refer to overbought or oversold. Today, oversold and overbought doesn't apply.
EUR/USD today at 3 1/2 hours into the day trade already traded from 1.0553 to 1.0590 then 1.0575. Due to off balabce, the 7 hour day trade may or may not apply until 4 and 5 Est when the 24 hour trade ends.
I tried to apply Fibonacci numbers to 7 hour day trades and I can't find where it applies or works to enter or exit trades. Markets were created for levels, ranges and targets for simple math but not for Fibonacci numbers. And possibly the reason why it doesn't work. The other assumption is Fibonacci numbers are to large to apply to shorter ranges.
The 24 Hour trades were created from the 7 hour trade and its under assumption Fibonacci numbers also doesn't apply as a useful trade tool.
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