One of the key approaches for all forex traders is to use multiple timeframes which we explain in detail in this session. But not only to the charts, but also on the trading indicators, starting with the currency strength indicator and the currency matrix. As Europe opens we focus on the single currency of the euro, and interestingly not the the EUR/USD which has been rangebound for some time with much better opportunities in the cross pairs of the EUR/NZD and the EUR/AUD with some great moves! Here we use three timeframes of the hour, the 12m and the 3m. The hourly chart gives us set ups then the VPOC comes into play with breakways on rising volume, and of course all supported with volume price analysis and the Quantum Trading tools and indicators.
In trading forex one aspect of time is key, and that’s the session crossovers of Asia to Europe and London, followed by the US session. These are times at which the market makers are once again active with their usual tricks and traps all revealed with volume, and always an excellent time to spot reversals.
The fundamentals for Europe were mildly positive against a backdrop of an economy heading into recession, helping to drive the euro, but not against the British pound.