Updated: Aug 1, 2020
Standard Member Opportunities
April has been a lucrative month, not only for our trader and professional members but also our FREE standard members were able to catch multiple trades in one go. Recent labor statistics and Purchasing manager data in the United States have shown positive signs for the USD which has been accounted for in the strengthening points in the Currency Strength Meter Quantitative system.
If we take a top down approach starting with the USD currency index we can clearly see throughout April the USD has been weakening. As forecast by the Currency Strength Meter proprietary system. However, on the 10/04/2019 we saw how the USD created a higher high then became discounted again dropping to 96.9.
This was a perfect opportunity to buy the USD at a discounted rate with support from the Currency Strength Meter Strength shift (+5) on the 10th. It has since gained ground after forming a morning star in the strong area of buying nearly breaking the previous 1HR high at 97.23.
If we remind ourselves again of the Currency Strength Meter scores we remember that EUR was sitting at a weak score of -18, while simultaneously the USD increased by 5 points to -2. The big strength shift is an early indication of a potential reversal. What we can see from the price chart is a similar situation to the DXY price chart but inverted.
The Euro strengthened against the USD throughout the month but congested around 1.128. This is where some big selling power started to come in creating a lower low on the 10/04/2019 before retrace back to 1.128. This was a great spot for any of our FREE members to get in on EURUSD. Since EUR was already sitting at a weak score and USD showed a strong strength shift getting in short here wouldn't have been a bad choice. It has since started its downward trajectory towards 1.12464.
GBPUSD is known to have similar price movements to EURUSD. However, with support from the Currency Strength Meter system we had an even stronger bias towards the down side. Just after the evening star on the 10/04/2019. The scores showed a huge shift of -7 in GBP, at the same time USD strengthened by +5. Overall, GBP ended on a weak score of -14.
The confirmation of technical from the evening star and the fundamentals from Logikfx gave our free members the perfect chance to snap up some profit from GBPUSD. Having already been rejected from 1.312 gives extra confidence that sellers have control on this price. The support from Currency Strength Meter and price action alone made this a perfect trade.