Harmonic Symbiosis of Technicals and Fundamentals
The eyes are the mirror of the soul and reflect everything that seems to be hidden. Is the same true about charts? Absolutely. After successful week on EUR/USD, we've been getting a lot of questions on how we "read the charts". Well, buckle up :)
There are people who trade purely on fundamentals or technicals. It's been an ongoing battle for quite a while. This whole situations reminds me of two armies that are about to collide holding flags. One side has a duck, the other has the inverted version of the same flag that looks like a rabbit.
The reality about markets is.. one doesn't go without another. Moreover, it is all imprinted in what we perceive as a chart. If will for June section of the EUR/USD chart, we can note that the major news release are coincidental with the larger trends; however, they're expected through technicals as well.
Let's consider the range in the chart above, as we were approaching the upper side, some important news were released keeping it from breaking upwards. When the range slightly broke the lower boundary and wiped off some long positions, we saw a positive CPI m/m data released.
This goes all the way around as well, when the price reached 1.04 European Central Bank made an effort to maintain the price at that level and recover, even though there were no actual economical drivers for that. The retailers, obviously, supported this process as they saw a quite strong and familiar patter of "triple bottom".
This is not some theory or conspiracies, this is just how economy works through oscillations. Top successful traders call it "feeling the market" and it mostly comes from experience, but once you see it, you can't see it.
I hope this helps and you have a whole weekend ahead to let it sink in :)
All the best to the entire TradingView community!
There are people who trade purely on fundamentals or technicals. It's been an ongoing battle for quite a while. This whole situations reminds me of two armies that are about to collide holding flags. One side has a duck, the other has the inverted version of the same flag that looks like a rabbit.
The reality about markets is.. one doesn't go without another. Moreover, it is all imprinted in what we perceive as a chart. If will for June section of the EUR/USD chart, we can note that the major news release are coincidental with the larger trends; however, they're expected through technicals as well.
Let's consider the range in the chart above, as we were approaching the upper side, some important news were released keeping it from breaking upwards. When the range slightly broke the lower boundary and wiped off some long positions, we saw a positive CPI m/m data released.
This goes all the way around as well, when the price reached 1.04 European Central Bank made an effort to maintain the price at that level and recover, even though there were no actual economical drivers for that. The retailers, obviously, supported this process as they saw a quite strong and familiar patter of "triple bottom".
This is not some theory or conspiracies, this is just how economy works through oscillations. Top successful traders call it "feeling the market" and it mostly comes from experience, but once you see it, you can't see it.
I hope this helps and you have a whole weekend ahead to let it sink in :)
All the best to the entire TradingView community!