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Euro, Yen And Pound In Focus As London FX Market Opens

Euro, Yen And Pound In Focus As London FX Market Opens

In this morning’s London forex session David and I started with a look at the EUR/CAD, a pair I highlighted a few days ago on my site, and one which was an interesting confluence of the fundamental, the technical and the relational and something we cover in great detail in the Quantum Trading forex education program.

We then moved to consider some of the strong moves overnight for both the euro and the Japanese yen and the start of the European session was notable for the congestion phases building around the volume point of control on the faster charts. It is as these points that markets are in price agreement, with the VPOC itself acting as the fulcrum of the market with no bias. The analogy here is of a see-saw, with both sides of equal weight. Once bearish or bullish sentiment develops, this then moves the price action away from the volume point of control and driven by volume as the breakaway trend then develops. At such times, patience is the key, and we have to wait for the trend to develop which is then confirmed by volume price analysis and supported by the Quantum Trading tools and indicators.

Ahead of the London open, the British pound (yellow line on the currency strength indicator) was heavily overbought, but continuing to move higher before rolling over on the 5 minute time frame as a speculative reversal position developed with the yen moving firmly lower. However, with the open so close, the prospect of a reversal is always likely with a trap move as London markets open with an associated surge in volume. The pair continued higher to 148.20 which is where it stalled as I suggested in the session, and has since fallen back to the volume point of control on the 5 minute chart which remains anchored at 147.98.

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