Author: FX

In the world of trading, consolidation phases are like those quiet moments in the auction house. Prices tend to trade within a defined range, often marked by support and resistance levels. This can happen for various reasons, such as traders waiting for fresh economic data or a major news event before making their next move. But here’s the exciting part: consolidation isn’t just a lull in the action. It’s a valuable piece of information for traders. Why? Because these phases can often precede significant price movements, either a breakout (price sharply moving above resistance) or a breakdown (price falling below…

This candlestick pattern, distinguished by its long tail or shadow and small body, offers traders a clear glimpse into market sentiment and potential price movements. Pin Bars reflect critical moments in the market where there’s significant price rejection or indecision. Traders look for these formations at key support and resistance levels as they often indicate potential reversals or continuations in price trends. Mastering the art of identifying and interpreting Pin Bars can provide traders with a valuable edge in anticipating market shifts and making informed trading decisions. These candlesticks are like snapshots of market psychology, capturing the struggle between buyers…

While most market players were zoned in on the FOMC minutes and expectations for Powell’s testimony during the Jackson Hole Symposium, commodities like gold and crude oil also responded to their own set of catalysts. Geopolitical headlines and global growth concerns dragged the energy commodity mostly lower during the first half of the week while the precious metal managed to hit record highs. How did the rest of the asset classes react to top-tier developments? Check out this week’s market headlines. This Article Is For Premium Members Only Become a Premium member for full website access, plus get:…

September rate hike odds were the talk of the forex town, creating a sour week for the Greenback, but there were other stories in FX to mix up the price action this week. Source link

Gold prices jump over 1% after Fed Chair Powell hints at upcoming rate cuts, expressing confidence in inflation nearing the 2% target. The US Dollar Index (DXY) falls 0.82% to 100.68, as Powell’s remarks push traders to bet on a 50 bps rate cut in September. US 10-year Treasury yields drop five basis points to 3.80%, supporting bullion’s rise, as market eyes the August Nonfarm Payrolls report for further guidance. Gold price edges up over 1% on Friday as the Greenback and US Treasury bond yields dive following dovish remarks from Federal Reserve Chair Jerome Powell, who signaled he’s confident…

Mexican Peso rallies sharply with USD/MXN falling over 2%. Mexico’s economy shows mixed signals, with Q2 GDP growth at 2.1% YoY but a contraction in economic activity, as Banxico debates the appropriateness of recent rate cuts. Powell’s speech at Jackson Hole hints at upcoming rate cuts. The Mexican Peso rallied sharply against the Greenback on Friday after Federal Reserve (Fed) Chair Jerome Powell announced that the central bank is ready to begin its easing cycle. This undermined the US Dollar, which is tumbling to a new yearly low, according to the US Dollar Index (DXY). Therefore, the USD/MXN collapses over…

NZD/JPY gained ground on Friday’s session, mildly to 89.95. The RSI holds near neutral territory, indicating a balance between buying and selling forces. The MACD shows flat green bars, suggesting that momentum is stabilizing. The NZD/JPY currency pair is consolidating sideways within a familiar range below 90.00. Technical indicators display mixed signals, with the Relative Strength Index (RSI) hinting at neutral sentiment and the Moving Average Convergence Divergence (MACD) showcasing a stabilizing momentum. The RSI, reflecting the momentum of price changes, currently sits just below 50. This reading suggests that neither buyers nor sellers have a clear advantage in the…

EUR/USD tipped into 1.1300 for the first time in over a year on Friday. Fed policymakers open the door to rate cuts during Jackson Hole. Coming up next week: key EU and US inflation prints. EUR/USD rallied into its second-best day of August, climbing seven-tenths of one percent as the US Dollar tumbles across the board. Market risk appetite is pinned into the ceiling after Federal Reserve (Fed) officials broadly tipped their hand to investors, signalling that the US central bank is finally ready to start cutting interest rates. Forecasting the Coming Week: Recession concerns take over Fed’s easing According…

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and…

Powell offered a lift to US stock markets but there was some mid-day angst along with signs of sector rotation into pro-cyclical small caps.Closing changes on the day:S&P 500 +1.2%Nasdaq Comp +1.5%DJIA +1.2%Russell 2000 +3.1%Toronto TSX Comp +1.1% (record high)On the week:S&P 500 +1.4%Nasdaq Comp +1.4%DJIA +1.3%Russell 2000 +3.4%Toronto TSX Comp +4.1%The S&P 500 is now just 0.6% away from the all-time high. This article was written by Adam Button at www.forexlive.com. Source link