Tom Hall Market Review #6 – Thursday, 21 March 2019
Canadian Dollar / Japanese Yen
Active Position – Tuesday, 12 March 2019
I outlined in Market Review #5 the 4-hour timeframe consolidated deeper than initially expected, this caused drawdown to exceed 0.40%.
The 4-hour horizontal structure at 83.60 held price action for three consecutive days.
The acceleration finally kicked-in helping price to breach the 50EMA and 200EMA taking the active position back to breakeven.
A break and close below 82.60 would indicate a higher timeframe trend change, providing more positive confluence to our active position.
Euro / U.S. Dollar
The outlined on the failed to hold, as price breaches the previous structure high at 1.1390 on the 20, March 2019.
Currently, there’s no trade opportunity given the minimal reward comparative to risk and substantial stop loss required. However, the breach of both Daily and Weekly structure has my attention as price develops throughout next week.
New Zealand Dollar / Swiss Franc
I urged inexperienced traders in Market Review #5 to trade the NZD.CHF with caution, due to the high potential of traps that would cause unnecessary drawdown.
The positive confluence failed to outweigh the negatives, confirming my thesis and invalidating a trade opportunity.
The long-awaited, highly anticipated Weekly structure at $60.00 is now under pressure as we approach market close.