Forex Trading Insights: Moving Averages to Watch
Forex Trading Insights: Moving Averages to Watch
Forex Trading Pro Matt provides an in-depth forex market analysis and trading strategy overview in this comprehensive video. He covers the key levels and moving averages to watch for major currency pairs like the US Dollar Index (DXY), USD/JPY, EUR/USD, AUD/USD, and USD/MXN.
Matt emphasizes monitoring the dollar index direction to gauge overall market sentiment. He highlights important support and resistance zones like 100.425 on DXY, 1.26 for EUR/USD, and 63.00-65.00 for USD/MXN.
Moving averages like the 20, 50, 100, and 200-period MAs provide additional reference points for trend bias. Matt points out USDJPY breaking below its trendline while USDMXN aims to break its 200-MA.
Overall, Forex Trading Pro Matt recommends respecting the technical levels, tracking momentum from higher timeframe patterns, and preparing bullish or bearish plays depending on breakouts and the dollar's overarching trajectory for prudent forex trading strategies.
Outline
I. Introduction
• Overview of the day's forex market price action
II. US Dollar Index (DXY) Analysis
• Initial dollar pop on news release
• Pullback and test of the 20-period moving average
• Key levels to watch: 100.425 resistance and weekly open support
• Gains made earlier in the week have been wiped out
• 20-period moving average upholding price
III. USDJPY Analysis
• Broke below trendline and continued dropping
• Trading below 20 and 50-period moving averages
• Only 100 and 200-period moving averages left as support
IV. Other JPY Pairs Trading
• All yen pairs flying today
• USDJPY forming bull pennant ahead of Friday trading
• Potential bullish breakout if USD gets above 100.425
V. EUR/USD Analysis
• Clutch 1.26 forward level held
VI. AUD/USD Analysis
• Pinned below major wild card 0.6550 level
VII. USD/MXN Analysis
• Stuck below 200-period MA but forming higher lows
• Potential to continue run higher if breaks above 200-MA
• Key support levels at 63.00 and 65.00
VIII. Key Takeaways
• Watch dollar index direction
• Respect key support and resistance levels
• Monitor moving averages for trend bias
• Higher timeframe levels and patterns still in control
Transcript
Hello. So today was a pretty flat day after the initial pop for the dollar. So on the release of the news there was this initial pop for the dollar.
But after that pop pulled back, we then had the dollar come back down and in the same way that it did at the top of the week, tested it 23 moving average. And so that'swhat we're going to continue to watch until the weekend. Is this 20 period moving average going to continue to curl the dollar back up to get it back above this minorquarter level of 100 and 425 to close? Our bear is going to get in control and kind of dominate in going into the weekend and getting the price action below the 20 period moving average and back down towards weekly open.
That story still has to be told for this week because in the single that we've talked about before, the gains that have been made for this week have been all but wiped outas we are right back here above weekly open with one more day left for this week to see if price is going to come back down to weekly open or that 20 pair movingaverage is going to be able to continue to uphold the price. We also saw for the UCID that for this one, after it lost the trend line, that it continued to drop. And so now with the UCID, we do have that one not only just underneath the 20 period moving average, but we also have it underneath the 50 period moving average as well.
So that means that of the lower, we only have the two longer period moving averages being the 100 period moving average and the 200 period moving average. So withthat it is going to be really important, very critical to continue to watch this one going into the weekend. But again, this one is going to be contingent upon what the dollar itself actually does.
We also saw for the UJ idea along with all of our other yen pairs, everything was pretty much flying today. We get a nice bull pennant here for going into Friday. So withthis bullpennant we could definitely get this one breaking out to the upside, especially if we get the dollar going back above 100 and 425.
We get the dollar going back above 100 and 425, we can definitely get a bullish breakout of this penny here. If you guys want to see what it is that we're seeing here forthis one, you just want to see here that price just needs to break out above. And with a breakout above here, that would be bullish going into the weekend, especially if thedollar can break back to that 104 quarter spot.
So that's what we're looking for there. Also with our guidance, this one came back up to hold above 126. 126 is very clutch forward for the EU idea.
Again, it was able to push back up above this major forward level.
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