Strategic Forex Trading - SRO

Just for the record! A summary, Review & Outlook Ahead

The amazing truth of the matter, is that when the Forex market made that slight recovery on the USDX at 75.50bp; the EURUSD headed lower with prices coming back to its original trend higher was the real limelight. The corrective movement, as we mentioned on our April 16 video ' 8 Forex Technical Trading Tools & Analysis thru 4-22' on Youtube and a follow-up market view analysis dated the 18th of April ' Major Correction within a Major Trend' mentioned that it was just a short-lived correction that we expected and could more likely be a buyers trap. Well, it did turn out to be one.

Although, that corrective move was considered to be a major correction coming from a 1.4520 high and down to a low of 1.4155 for the EURUSD from 04-14 to 04-18 respectively for three consecutive days. Thereafter, the registered high was at 1.4647 on the 21th of April. Which is a three day up move from a three day down corrective move. A retreat from the highs made some significant statements that that a selling divergence between the Relative strength and momentum indicators on those high prices met some forced liquidation from earlier bear positions holding on until they threw in the towel. In other words some market capitulations from sellers in the market. However, these would not be entirely be seen in the market except knowing how the market prices have behaved by following the price page indicator. On a technical perspective by comparing the divergences between the higher prices with the relative strength and momentum indicators should provide you with the signal. Although, by having a keen analytical eye and training can this be achieved. Which apparently, other traders and analysts were calling it a possible reversal. Of course its always after the fact. . . easier said than done! right?

Meanwhile the GBPUSD did the same exact scenario that dropped to 1.6165 from a high of 1.6250 which is a slight correction. However, that particular higher curve we mentioned from our video plus the idiosyncrasy of the Sterling Pound of making a double top candlestick formation was a false indication that would only move upwards. And registered a high just about 1.6600 vs. the USD. The lower closing at 1.6510-15 levels was merely because of the shortened and thin closing trading sessions for Good Friday.

For a complete market view report of this article and the continuing market outlook; pls. visit http://www.megatrade101.com/