What an awesome start into the new trading week.
The Oil news caused some serious weekend gaps and impact to our commodity currencies AUD and CAD
but considering the real trading volume data with FX Volume we see decreasing deltas across most majors
So let's have a look how the individual currencies have changed.
As we can see the USD rose by 4% which might indicate the end of it's current down move.
So let's have a quick look of what we see right now on the majors.
If we consider the FX Volume history lines at the bottom of this screenshot we see that the EUR is falling while the USD is rising.
Both lines are moving enough to ring my alarm bells and I'll stay out of that pair until the situation becomes clearer.
Same situation on GBPUSD - GBP dropped by 2% from it's peak at 62% while the USD is rising
The Oil news hit AUDUSD damn hard - since today's market opening it lost 14% of its long ratio
So even if FX Power indicates strength for the AUD with FX Volume you can clearly see what's going on in the real market.
Due to their high correlation we see the almost identical price movement on NZDUSD
The CAD was even weak before these news but it recovered 2% from it's low at 10% during the late Asian session.
The JPY has been enormous strong the last days but nonetheless we can see on USDJPY a decreasing delta as well.
And on USDCHF we see a similar picture like on USDJPY
From my point of view, these is no reason to trade within this stagnation period.
I'll
check how the volume is moving before I open new positions.
Stay safe and be prepared...
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Daniel
