Author: FX
Congress has mandated the sale of 147 million barrels of oil in the 2024-27 period to pay for infrastructure and other spending but now those sales could be reversed.The Biden administration is seeking to cancel or delay those plans, which start with 35 million barrels in 2024.It will be interesting to see where the oil market stands at that time but with prices at $81 now, China offline and producers showing discipline, I have a hard time seeing how they’re going to refill the reserve. As for this, the pace of sales was so slow that it’s hard to say…
US Dollar remains on the defensive, spurred by the ISM manufacturing PMI dropping to the contractionary territory. Inflation in the United States remained unchanged, while unemployment claims fell. The Australian Dollar got bolstered by a weaker US Dollar as traders eye RBA’s Governor Lowe. AUD/USD Price Analysis: Could test 0.7000 if the AUD/USD clears the 200-DMA. The Australian Dollar (AUD) advances in the New York session but retraces after hitting a new two-month high around 0.6840s as sentiment shifted sour. United States (US) economic data portrays a gloomy economic outlook while increasing borrowing costs by the Federal Reserve (Fed) would…
Introduction to the Fibo Bar Indicator The previous periods price range can often represent a price swing. It is common to see a scenario wherein the low of the previous period is a swing low and the high of the previous day is its corresponding swing high. In these scenarios traders can use the range of the previous day as a basis for plotting a Fibonacci tool. The Fibo Bar Indicator is a trading based on the concept of using the previous period’s range as the basis for the Fibonacci levels. What is the Fibo Bar Indicator? The Fibo Bar…
U.S. DOLLAR ANALYSIS & TALKING POINTSDovish rhetoric backed by U.S. core PCE.Key technical levels being tested on DXY. Recommended by Warren Venketas Get Your Free USD Forecast USD FUNDAMENTAL BACKDROPThe Dollar Index (DXY) remained depressed after the much anticipated core PCE print was released. On the face of it, the principal PCE and Core PCE indexes delivered forecasted figures (see economic calendar below) but looking at the better than expected initial jobless claims seemed to continue with the narrative delivered by Fed Chair Jerome Powell yesterday. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market…
The U.S. is printing its core PCE and ISM manufacturing reports! Will the releases bust EUR/USD out of its triangle consolidation? Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CHF’s range bounce or break situation after Australia printed its CPI and China reported its PMI numbers. Be sure to check out if it’s still a valid play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: Consumer-led rebound inspires upward revision of Q3 US GDP from 2.6% q/q to 2.9% EIA: U.S. crude stockpiles plunge as refiners surge activity…
The USD Index has tanked to 105.30 lows today from over 107.10 as Chair Powell more or less confirmed a 50bp hike at the next FED meeting, was sanguine about the terminal rate being over 5% and reiterated (again) that the fight to bring down inflation was far from over. He was as Hawkish as had been expected. Stocks & Treasuries ripped higher with optimism about China’s reopening prospects even after mixed US data yesterday. EUR – retakes 1.0450 from under 1.0300 lows yesterday.. JPY – collapsed to under 136.00 today from 139.85 highs yesterday…
Welcome to a brand new trading month! Let’s kick things off with a quick look at these bearish plays on Brent crude oil and EUR/JPY. Here are the levels I’m watching. EUR/JPY 4-hour Forex Chart Breakdown alert! EUR/JPY looks ready to bust through the bottom of its falling wedge pattern on the 4-hour time frame. If this pushes through, the pair could tumble by the same height as the chart formation or roughly 500 pips. What are technical indicators saying? The 100 SMA just crossed below the 200 SMA to confirm that bearish vibes are present, possibly taking the pair…
USDIndex slightly below 1-week amid reports of a softer stance on Covid emerging in China’s official rhetoric, which is keeping hopes alive that there won’t be a move back to tighter restrictions. All eyes are on an expected hawkish stance from Chair Powell’s speech today. Stocks – The Nikkei closed with a -0.2% loss, the ASX managed a 0.4% gain and Hang Seng and CSI300 are currently up 1.1% and 0.1% respectively. GER40 and UK100 futures are up 0.6% and 0.4% respectively. US futures are underperforming, but also managing slight gains. Wall Street closed mixed…
Traders have different ways of identifying trends and trend direction. Some traders identify trend purely based on the trajectory of price action. Some use moving averages. Others use different technical indicators. Pure price action traders are very unique in identifying trends because most price action traders rely solely on a naked chart. This lack of structure and concrete rules make identifying trends and trend direction very difficult for new aspiring price action traders. However, there are ways to objectively identify trend direction based on price action. First, let us look into how price action traders identify trend direction. Price action…
Introduction to the Buy Sell Volume Indicator Volume is one of the most important information that seasoned traders take note of. This is because trade signals with high volume tend to indicate that the trade signal has strong momentum. The Buy Sell Volume Indicator is a trading tool which is based on the concept of using volume to identify strong momentum. What is the Buy Sell Volume Indicator? The Buy Sell Volume Indicator is a momentum technical indicator which uses volume as its basis for identifying momentum direction. This indicator is an oscillator type of indicator which plots histogram bars.…