Forex Analysis Report 9-5-18...More Brexit Drama

rollandthomas (74)in #forex • 6 years ago

Brexit is the impending withdrawal of the United Kingdom (UK) from the European Union (EU). In a referendum on 23 June 2016, a majority of British voters supported leaving the EU. On 29 March 2017, the UK government invoked Article 50 of the Treaty on European Union. The United Kingdom is due to leave the EU on 29 March 2019 at 11 p.m. UTC (midnight Central European Time), when the period for negotiating a withdrawal agreement will end unless an extension is agreed.

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Earlier today, the Brexit drama continued. Bloomberg reported both the UK and Germany decided to postpone future trade relationship terms and focus on immediate terms in order to facilitate an easier Brexit agreement. That news sent the GBP/USD up 100 pips. However, by the end of the day, a spokesperson for the German government says the position of Berlin has not changed on Brexit sending price down 100 pips. Thus, today was a great day for day traders and for those who took advantage of the 200 pip round trip did well today. But what if you are a swing trader, like myself and want a slice of pie too.

Monthly Chart (curve timeframe) - the monthly trend was broken back in May, signal a major shift in price. Monthly demand is at 1.2100 and monthly supply is at 1.4800.

Weekly Chart (Trend Timeframe) – the trend is clearly down and price broke through the weekly demand at 1.2870 at the beginning of August. Based on the weekly demand not holding up price and the 21 EMA line pointing downward, the chart suggest price wants to go lower.

The chart suggest to short price if price can get back to weekly supply zone at 1.3150. That 1.3150 level was the origin of a strong leg down by the sellers and the chart suggest there are still unfilled seller orders at that level. My target is weekly demand zone at 1.2400.