An interesting forex session in which there was little activity in the London session was confirmed by the low numbers on the hourly matrix chart as traders awaited the CPI releases in the US. Whilst this is not the FED’s preferred inflation metric, it nevertheless provides the market with some insight into how quickly inflation is rising.
Despite the subdued London tone, there was a really nice trade in the EUR/CAD. Indeed, the cad is very much the currency to watch and it often moves quite strongly outside of his natural timezone. The trade setup was on the 5 min chart as a breakout from the volume point of control and S3 on the Renko, with a reversal, then coming on a bullish engulfing candle. The reversal saw the pair move back to the S3 so a round trip ahead of the release.
Meanwhile, GBP/JPY was also in focus, reversing on positive US market sentiment – as we can see in the recording.
By Anna Coulling – creator of volume price analysis
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