Good day fellow users of The Koala System.
In the last weekly review, we noted choppy conditions mainly because the of Greece deficit crisis. As The Koala System is a system to help trade with the trend, it would not perform well in choppy conditions. However what i like about this forex system is that it helps to identify no trading zones too, reminding us to stay out of harm’s way.
This week, the EUR/USD was mainly bearish due to the escalating concerns over the Greece deficit crisis and it’s implications on Europe. The week began with Monday being a bank holiday for a number of countries including Britain. As London is a major forex market, the absence of it gave us low trading volumes as seen by the flat price action. The Koala System correctly identified it by showing a no trade zone signal.
The first standard opportunity came on Tuesday as markets come back from the holiday. The EUR/USD slipped lower on concerns over the Greece deficit crisis. This opportunity was a potential winner if you had a proper trailing stop loss.
The next opportunity came on Thursday before the EUR/USD was overwhelmed with negative sentiments and risk aversion. It tested the low of 1.2520+/-.
On Friday, we had a last opportunity for harvest before we close for the week. That was a bounce of the 200 EMA as the price consolidated for the Friday close.
Overall, the week was a trending bearish week and this could be seen from the price action staying below the 200 EMA for most of the time. Unfortunately due to the spiky reactions from the various developments, the harvest potential was limited. Having said so, when did you ever see the price move in a straight slope? 😛
Trade safely and read the EUR/USD Weekly Review for a heads up.