At Value Flow Trading (VFT), we conducted a detailed market analysis session covering major currency pairs and commodities, including DXY, EURUSD, GBPUSD, Gold, and the Yen basket. The discussion focused on identifying potential retracement opportunities, technical patterns, and entry/exit strategies across different timeframes, while maintaining a cautious bearish outlook for select markets.
For DXY, our analysts identified a key left shoulder level at 99.870, anticipating a retracement to that zone before looking for buy opportunities. On EURUSD, the team highlighted a potential retracement to a discount level around 1.174, aligning with a fair value gap and a left shoulder pattern, which could present a short entry signal once confirmed on the 15-minute timeframe.
In the GBPUSD analysis, VFT discussed the ongoing bearish market structure, noting the series of lower highs and lower lows on the daily and 4-hour timeframes. The team emphasized that while GBPUSD has already cleared its previous low around 1.31940, EURUSD has not yet done so leaving room for further downside continuation. A retracement to the premium level near 1.31287 was identified as a potential sell zone, with the market direction described as “massively to the downside.”
The conversation also extended to Gold, where VFT observed that price is currently consolidating within a new range after rejecting a previous region. The team expects a minor sell-off before a potential bullish continuation, planning a buy setup on the 15-minute timeframe once price retraces to the identified support level.
In the Yen basket, VFT maintained a bearish bias on both the weekly and daily timeframes, citing failed closes above key resistance levels and a potential sell liquidity grab forming. A confirmed break of the identified low would likely trigger a sell continuation toward lower zones.
For GBPJPY and EURJPY, the focus shifted to potential breakout buys, with the team noting that any strong break and close above resistance would signal a structural shift to the upside. Until then, traders were advised to maintain caution and await confirmation before taking positions.
The session concluded with updates on the ongoing FX Bootcamp registration and the Falcon 2.0 trading bot program, both designed to help traders refine their strategies and leverage automation for consistent performance. The team agreed to reconvene at 2 PM GMT+1 for the next Market Colour Recap, where they’ll review market reactions to the day’s setups and geopolitical events.