NZDUSD Daily Updates(24.06.2016)
Traders, the results are out and The UK has decided to be independent with a narrow 51.8% Vs 48.2% vote split in favor of Brexit and what happened next has been a series of capital flight to safe havens like the Yen and the USD-with more bad news coming in that in light with developments in the UK, the Australian share market lost a remarkable $50B. By all standards today is a day that will go down in history and we look at the charts, reversal occurred at a very significant and important level-exactly at 38.2% Fibonacci level. Historically, this point is very important and going by a rule of thumb, all reversals at 38.2%-61.8% almost always conclude at the 161.8% Fibonacci extension. I’m confident that this will be so looking at all fundamentals trickling in in the next couple of months-the Feds obviously will try to do something about the interest rates and if that happens the bears will be in full control and the next target will 0.60 level. For now our game plan will be as follows: As soon as the market calms down next week, now that that long bear reversal candle is already printed and the stochastics are oversold- we look to initiate short positions in the 1 HR chart-assuming that you were risk averse and didn’t initiate any position yesterday. Otherwise, let’s watch what happens next and look to analyze the press conference due by Cameron and later by Mark Carney.
About The Forex Analyst
I have been trading Forex and commodities for the past 3 years. [email protected] for further discussions.