October 30, 2018 - Institutional Market Observations
This week has begun and the institutions have shown their hands to some degree. Last week we saw price push into some weekly supply and demand zones and this is how the stage is set for this week.
GOLD ~ Monthly chart is one day away from closing as a bullish engulf which would put momentum upwards and help facilitate a move much higher to the supply at the 13's. Currently price is in a weekly supply that is of lower quality, so with that being said price can easily break through it and potentially create new demand for a move higher.
OIL ~ the institutional selling has begun and i believe this is just the beginning of a much larger move lower. Price is going through it's distribution phase right now as the institutions close their long positions for profits. Now it comes down to timing the entry to get in short and ride the momentum to the downside. Weekly chart still ranging and i'd like to get in at the top of the range. Three daily supply zones of which price can react from. Very good chance we see a move upwards from here considering the state of the $usdcad.
#DOLLAR ~ on the brink of breaking the weekly supply but for now it is holding. Considering the other dollar pairs it's a possibility that we see this weekly supply break.
#usdjpy => weekly trend line holding price up.
#usdchf => breaking up higher into tested supply.
#usdcad => weak weekly supply on play and can easily break through.
#EURUSD ~ looking at the euro dollar a decent weekly demand zone is in play and price is holding. What I believe is holding price right now is gold weakness that has taken shape. Should golds weekly supply break, we could see a nice rally from this demand.
With euro dollar low in price, I'll be waiting to see how much of a move up we'll receive so I can start building a short them position. I'll also be looking at #oil to do the same thing. With #oil I want to make sure i get in as close to the collapse as possible as swaps will be against me and as with the euro dollar swaps will work in my favour.