Stock Market Hits Historic Lows
We have seen historic lows this week in the stock market. This coupled with the sagging global economy has driven some of the wild moves we have seen across the currencies.
New Bank Flow Levels
We have a few new bank flow levels to make you aware of. First on the GBP/USD we are seeing a buy zone set up from 1.4725 down to 1.4700. We are looking for the GBP to spike into this area for a bounce. There is some previous supports in this area too so we are using that as an additional confirmation.
Trading Strategy
A very similar situation is setting up on the EUR/USD. A buy zone is in place from 1.2410 down to 1.2370. When there is a “zone” like this, one suggested trading strategy would be to use a lighter size trade at the first level and then if the market spikes to the next level add on another trade portion.
