As expected all the pairs including EUR-USD, GBP-USD, USD-CAD, USD-CHF, USD-JPY, GBP-JPY, EUR-GPY, AUD-USD, etc are in the zone of turbulence this week due to mix economic data from the Euro Zone and US. Irregardless of all the technical indicators the market move ups and downs at every economic data released. MACD and Stochastic becoming insignificant at this point as market moves based on support and resistance points.
The most reliable indicators all the weeks is simply support/resistance point where the market fluctuate within it and of course major trend. The economic data create noise along the way within these zones but in the end it normalize move according to the trend.
What we have learned this week ?
- MACD and Stochastic indicators not always working at all times
- Mix economic data creates indecisiveness and turbulence in the market
- Turbulence are temporary
- Support and Resistance point become significant
- Trend also plays a major roles