In the London forex session it was the currency heatmap which took centre stage as we considered two currency pairs which are now at the extremes on the ranking ladder, and therefore possible opportunities for a reversal trade. The EUR/AUD was one with the USD/CAD the other. Both very strongly overbought, but as you will see from the video, offering very different opportunities. One of the candle patterns we consider in detail here is the inside day, a powerful sequence of candles reinforced once we consider volume price analysis which reveals the truth behind the price action.
The currency heatmap also offers some key insights particularly when considering the slower time-frames in relation to one another and whether the values are weakening on the slower time-frames.
Finally we follow the AUD/JPY as it rises ahead of the London open, but then begins to reverse as the new session opens, a move which continued throughout the morning across the Aussie dollar complex.