EUR/USD Homework June 19, 2013

In my effort to help my fellow forex traders I am sending my EUR/USD London session homework based on Market Gravity for free these last 2 weeks in June. I realize that many of you don't have the Real Trader's Guidebook 2013, so some of the terms may not make complete sense. But this daily report does indicate how I will be trading today. Have a great trading day!

EUR/USD homework applied to Wednesday June 19, 2013 London Session

Tuesday Stats:

Open 1.3333

High 1.3415

Low 1.3331

Close 1.3408

Range 0.0084

Direction Higher

GW High 1.3395

GW Low 1.336

GW Depth 12

GW Strength Moderate

Price Fairness Fair

Price Balance 1.08

DHN 1.3377

Tuesday Recap: The session did produce a trading range as expected. Price opened inside the GW and then quickly moved to higher outer space. Buyers were able to push to the 1.3400 level but then sellers began to absorb all the buy orders as 15 minute momentum ran to over bought territory. The morning high was within a few ticks of where the momentum turned down. Price then moved sideways to lower until the US CPI release. There was a brief spike higher to the morning high, but then a swift sell off to within a few ticks of the open. Buyers defended the open and regrouped to push higher and make new session highs in the last 30 minutes. This session had more of the feel of a day 2 in the control cycle, which makes some sense considering Monday's session looked more like day 1. Price was fair and balanced, so neither side has control.

For Wednesday Plan A: Anticipation of FED decision, economic forecast and press conference will dominate trade even though none of these will be released until after the London cash close. Neither side has control so expect a trading range session and use momentum studies to find the high and the low of the day. This is day 4 in the cycle for control which may behave like a day 3 since Tuesday looked more like a day 2. The elongated control cycle is due to the FED announcements as this meeting is more significant than most with all the debate of tapering the current QE from 85 billion per month. Expect more of the same as neither side will bet too hard before the FED announcement. In the balance of the US session, control may be won and will be reported in tomorrow's homework.

This email is for educational purposes only and does not imply or recommend any investment.