There isn’t a constant formula for attaining success in predicting how the market will respond to market events and data reports, or even indicate the cause of such responses.
A trader can draw on a matter that typically a beginning response, which is normally transient, full of activities. Then comes the second reaction, where every Forex trader has had some extra time to contemplate the integration of the report and news on the present market condition.
At that point, the market tends to decide if the releases of news had gone along with or against the sustaining expectation and if it responded accordingly.
Was the report’s outcome predicted or expected or not?
What does the first reaction of the market show us about the far bigger picture? By answering such questions, we can find out how to start interpreting the developing price action.
Consensus Expectation of the Market
A consensus …